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Firm pushes back bankruptcy filing

June 30 2010

Medical Staffing Network Holdings Inc. (OTCBB: MSNW.PK) said it now expects to file its previously announced bankruptcy on July 2 and reported a third amendment to its forbearance agreement with lenders, according to a filing on Monday with the U.S. Securities and Exchange Commission. The company had initially planned to file on Monday.

A deal to restructure the firm was struck on June 9 with the Medical Staffing Network's first lien lenders and 95% of its second lien lenders, according to earlier filings with the SEC.

The deal calls for Medical Staffing Network to file for Chapter 11. Plans then call for first lien lenders to bid to acquire the company using their debt as consideration. Medical Staffing Network doesn't anticipate any value will remain for holders of its common stock after the deal.

The Boca Raton FL-based company ranks as one of the largest healthcare staffing firms and operates the OneSource vendor management system. The company had revenue of $340.9 million in 2009, down 36.6% from the previous year.

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