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IN RE CHARTER BEHAVIORAL HEALTH SYSTEMS, LLC

Bankruptcy Nos. 00-989(MFW) to 00-1089(MFW), 00-1055(MFW) and 00-2231(MFW). Adversary No. 01-4704 (MFW).

277 B.R. 54 (2002)

In re CHARTER BEHAVIORAL HEALTH SYSTEMS, LLC, et al., Debtors. Charter Behavioral Health System, LLC, and Charter Managed Care Services, LLC, Plaintiffs, v. Managed Health Network, Inc., Defendant.

United States Bankruptcy Court, D. Delaware.

May 3, 2002.

Attorney(s) appearing for the Case

Laura Davis Jones, Rachel Sara Lowy, Pachulski, Stang, Ziehl, Young & Jones, Wilmington, DE, Ezra H. Cohen, Douglas E. Ernst, Troutman Sanders LLP, Atlanta, GA, for Debtors.

Philip Trainer, Jr., Ricardio Palacio, Ashby & Geddes, Wilmington, DE, for Managed Health Network, Inc.

William H. Sudell, Jr., Robert J. Dehney, Derek C. Abbott, Morris, Nichols, Arsht & Tunnell, LLP, Wilmington, DE, Ronald R. Peterson, Catherine Steege, Jenner & Block, Chicago, IL, for Official Committee of Unsecured Creditors.

OPINION1

MARY F. WALRATH, Bankruptcy Judge.

Before the Court is the Motion of the Defendant, Managed Health Network, Inc. ("MHN"), for dismissal of this proceeding in favor of arbitration. For the reasons set forth below, we grant MHN's Motion to Dismiss in favor of arbitration.

I. BACKGROUND

On February 16, 2000, Charter Behavioral Health Systems...

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