Magellan Health Services Inc. received a breather from its lenders yesterday and also announced the abrupt departure of its chief executive officer.

Erin Somers, a spokeswoman for the Columbia-based mental health insurer, said the deal with the lenders and the resignation of Daniel S. Messina were not related.

Yesterday's action by its lenders gives Magellan at least until the end of the year to come into compliance with the terms of its loan agreements, which call, among other things, for a lower debt-to-earnings ratio over time.

Charles Titterton, an analyst for Standard & Poor's - which has lowered its rating on Magellan several times in the past few months - said the agreement with lenders was "a heck of a development," more significant than the departure of the CEO.

The company, which built up $1 billion in debt during aggressive acquisitions over the past few years, announced at the end of September that it was out of compliance with its loan agreements. That meant Magellan's lenders could demand accelerated payback, and it would not be able to meet the payments.

The extension on the loan agreements, through the end of the year, means that "absent any surprises on the earnings front, this keeps the company as a going concern for a while," Titterton said. He said it was an indication that the lenders thought it was better to give the company a chance to turn itself around, rather than be forced into bankruptcy.

"As we continue to make progress on our work of debt reduction, we anticipate we'll be able to get additional waivers as we need them," Somers said.

She said Magellan would continue its efforts to cut costs, but, with respect to layoffs, did not plan "anything we haven't already talked about." Magellan had 911 employees in Columbia and 5,839 nationally as of Oct. 1. Somers said there had been 78 layoffs in Columbia and 565 in total over the fiscal year, which ended Sept. 30 - some last winter and another group in recent months - and that further reductions were likely as the company continues to trim costs.

Magellan's earnings have lagged as costs have risen, with more people using mental health services. Magellan provides mental health insurance or employee-assistance programs for 68 million Americans, making it the largest company in its field by far. While costs rose, Magellan was limited in its ability to charge higher prices to the HMOs and employers that are its customers, since many are on three-year contracts.

The company said Messina, who joined the company in 2000 and became CEO a little more than a year ago, will continue to be a member of its board of directors, although resigning as CEO and president. Jay J. Levin, who came to the company in April as chief operating officer, is to assume the president's title.

Levin and Mark S. Demilio, chief financial officer, will be responsible for day-to-day-operations. Somers said the board is deciding whether to name another CEO quickly or conduct a longer search.

Magellan also announced yesterday that its lenders had formed an "ad hoc committee," retaining financial advisers and a law firm, to monitor Magellan's turnaround efforts. A month ago, Magellan named its own financial adviser, Gleacher Partners LLC, as it seeks to reduce its debt load. Somers said it was "early in the process" to be "laying out options" the company might choose.

Magellan's stock, which traded at close to $8 a share last May, plummeted with disappointing earnings and the debt-agreement problems. Its shares lost 4 cents yesterday, closing at 19 cents. The company's announcements came after the close of trading.