Medical Staffing gets final approval of $15 million of DIP financing

By Lisa Kerner

Charlotte, N.C., July 21 - Medical Staffing Network Holdings, Inc. received final approval of its $15 million debtor-in-possession financing by the U.S. Bankruptcy Court for the Southern District of Florida at a hearing on Wednesday, according to an attorney close to the case.

The court previously granted the company interim access to $12 million of the financing.

As previously reported, General Electric Capital Corp. is the administrative agent.

The DIP facility will mature in 90 days, with the option to extend the facility for an additional 30 days.

Interest will be 10%.

Medical Staffing will pay an upfront fee equal to 3% of the maximum amount of the DIP facility.

The DIP loan obligations will be assumed under Medical Staffing's sale agreement under which substantially all of its assets will be sold to an entity to be organized and owned by its first-lien secured lenders.

The company previously said it would use the facility to pay the costs of the restructuring process and to assure its liquidity.

Based in Boca Raton, Fla., Medical Staffing is a health care staffing company. It filed for Chapter 11 bankruptcy on July 2. The Chapter 11 case number is 10-29101.

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