Medical Staffing Network Holdings Inc. (OTCBB: MNSW.PK) hired a chief restructuring officer, according to a filing with the U.S. Securities and Exchange Commission on Thursday. The company also signed a second forbearance agreement with its first lien lenders, with which it's in default.

However, the Boca Raton FL-based healthcare staffing firm and vendor management system operator said it may still face bankruptcy.

The second forbearance agreement signed on Wednesday prevents the first lien lenders from taking action until May 7, and the agreement may be extended another 30 days. In addition, the first lien lenders agreed to provide up to $5 million in loans to help the company meet obligations.

Medical Staffing Network owes $82.1 million to first lien lenders and $25.4 million to second lien lenders.

Second lien lenders are blocked from taking action under an agreement between creditors, according to the filing. Medical Staffing Network reported it missed a payment due Monday to second lien lenders, the filing said.

Medical Staffing Network said it's working with lenders to restructure its debt, but could file bankruptcy without an agreement.

"If the company's lenders are not willing to reach an acceptable agreement, the lenders could take action to sell the company's assets to repay their obligations," according to the filing. "In such event, the company might determine to seek relief under Chapter 11 of the U.S. Bankruptcy Code."

Mohsin Meghji, of Loughlin Meghji + Company, will serve as chief restructuring officer, according to the filing. Meghji's firm will receive $150,000 per month plus hourly fees for personnel of up to $750.

Loughlin Meghji will also get $500,000 if Medical Staffing Network is able to strike a deal for an out-of-court debt restructuring, go through a Chapter 11 bankruptcy restructuring, or if Medical Staffing Network is sold.

Medical Staffing Network Holdings ranked No. 4 on Staffing Industry Analysts' 2009 list of largest healthcare staffing firms.