Medical Staffing forbearance extended; bankruptcy filing seen Friday

By Caroline Salls

Pittsburgh, June 28 - Medical Staffing Network Holdings, Inc.'s credit facility forbearance agreement has been extended to July 2 from June 30, according to an 8-K filed with the Securities and Exchange Commission.

The amendment also increases to $9 million from $7 million the amount that GE Capital, the administrative agent, may make available to the company for additional revolving loans, if needed, to meet obligations as they come due.

The company continues to be in discussions with its lenders regarding a restructuring of its debt and capital structure. If an acceptable agreement is not reached, the company may have to file for Chapter 11.

As previously reported, the company has entered into a restructuring support agreement that lays out the terms of an agreed-upon financial restructuring of its debt and equity.

The parties to the agreement are General Electric Capital Corp. as administrative agent, all of the first-lien lenders under the company's amended and restated credit agreement and 95% of the second-lien lenders under its amended and restated credit agreement.

Under the agreement, the company is expected to file for Chapter 11 bankruptcy on Friday.

Medical Staffing is a Boca Raton, Fla.-based health care staffing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.