There have been warnings from Medical Staffing Network Holdings that it could go in for Chapter 11 bankruptcy filing in a bid to fend off default enforcement from its lenders. This is one of the commonly used methods and ways by companies that are on the brink of financial disaster. The company has already indicate to the Securities and Exchange Commission (SEC) that it was not complaint with its first lien agreement with General Electric Capital Corp. the situation has held since Dec 27^th, 2009 and the matter has been complicated by the fact that the company has not made much money on 2009.

Medical Staffing Network Holdings has just been able to compile its first 9 months financial reports and these have not been good for the company as it lost as much as $20 million. The revenue was $265.20 million and this was a hugely lower sales as compared to 2008 (sales were down by as much as a whopping 37%). The company has also no access to revolving credit line, which means that the company is tottering at the brink, with indications that it may be going the Chapter 11 way quite soon. This is imminent and don’t be alarmed if it happens.

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