Medical Staffing Network Holdings Inc. (OTCBB: MNSW.PK) said it is in discussion with lenders over a default, but hopes to reach new agreements, according to a filing on Feb. 1 with the U.S. Securities and Exchange Commission.

A previous forbearance agreement expired Feb. 1, and the company expects it will be out of compliance with lenders' requirements when it reports earnings for the year ended Dec. 27, 2009, according to the filing.

"If the company is unable to obtain a waiver or other acceptable arrangement with the first lien lenders and second lien lenders with respect to the default, it will likely have a material adverse effect on the company's business and financial condition," the filing said.

Boca Raton FL-based Medical Staffing Network Holdings ranks as the fourth largest healthcare staffing firm, according to Staffing Industry Analysts’ list of largest healthcare staffing firms. It also operates a vendor management system.