Magellan Health Services says it has received court approval for its reorganization plan allowing it to exit Chapter 11 bankruptcy.
"All that remains before we officially exit Chapter 11 are a few administrative tasks that we expect to complete this quarter," the Columbia, Md.-based behavioral managed-care company says in a release.
Magellan entered Chapter 11 status in March in an effort to reduce $1 billion in debt.
The company reports that its debt has been reduced by about $600 million and that it has found $150 million in new equity.
Earlier this year, Magellan reported that it provided behavioral health benefits to 68 million enrollees through contracts with health plans, government agencies, labor unions and self-insured corporations.