A bankruptcy judge has approved the sale
A bankruptcy judge has approved the sale of one of the nation's largest temporary-nurse staffing companies.
Medical Staffing Networks was bought by its creditors, who have a claim on the company that's just shy of $100 million.According to reports Medical Staffing, which is based in Boca Raton, will transfer to first-lien creditors, who formed an acquisition group to finish the deal. The company filed for Chapter 11 protection in July with a plan to obtain post-petition financing after it was sold to the newly-created Medical Staffing Network Healthcare group, which tabled a winning bid of $84.1 million earlier this month.The report said that while the sale will wipe out the shareholders of the old company, it will continue to operate and will be cleared of all its debt.It is believed the second-lien creditors, which were owed $26.8 million, consented to the sale. Medical Staffing listed assets of $87.8 million against debts of $140.9 million in its bankruptcy filing, and it experienced an operating loss of $1.3 million in the first quarter of the year.