Magellan Health Services, Columbia, Md., said its reorganization plan has been approved by U.S. Bankruptcy Court in New York and its reorganization will begin in the fourth quarter, subject to other necessary approvals. Magellan filed for bankruptcy protection with nearly $1 billion in debt in March. Under the reorganization plan, Toronto-based Onex would take a controlling interest in Magellan with a $103 million investment. Onex is one of Canada's largest companies with consolidated annual revenue of $23 billion. Magellan is the nation's largest behavioral managed-care company covering about 67.4 million people. In other news, Magellan said its COO, Rene Lerer, has been named to the additional post of president, succeeding Jay Levin, who had agreed earlier this year to serve in a transitional role at the company. -- by Julie Piotrowski
Magellan bankruptcy plan gets court approval
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