STOCK TITAN

MSP Recovery (MSPR) secures $0.2M in one-time Hazel and VRM funding

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

MSP Recovery, Inc. entered two small funding arrangements to access a total of $0.2 million of short-term cash. Through the Hazel Letter Agreement, its existing working capital lender Hazel Partners agreed, in its sole discretion, to a one-time $0.1 million advance under the Operational Collection Floor.

The company notes this advance is a standalone accommodation that does not reopen availability under the working capital credit facility and creates no commitment for future funding, and states it has no rights to, and no reasonable basis to expect, further advances from Hazel. Separately, VRM MSP Recovery Partners agreed to a one-time $0.1 million advance of recovery proceeds to support accounts payable, which must be reimbursed, along with certain prior consents, from any future financing, including potential debtor-in-possession financing if the company operates under Chapter 11 protection.

Positive

  • None.

Negative

  • Liquidity remains highly constrained, as both the Hazel and VRM arrangements are one-time, discretionary advances, with the company stating it has no right to further Hazel funding and explicitly cautioning against viewing the $0.1 million Hazel advance as indicative of future liquidity or its ability to meet obligations.

Insights

Two small, one-time advances highlight ongoing liquidity strain.

MSP Recovery obtained one-time advances of $0.1 million from Hazel Partners and $0.1 million from VRM MSP Recovery Partners, mainly for operating expenses and accounts payable. These sit on top of roughly $6.0 million of prior discretionary advances under Hazel’s Operational Collection Floor.

The company emphasizes Hazel’s facility remains fully discretionary, with no borrowing base, no committed liquidity and no obligation to fund. It explicitly states there is no right to, and no reasonable basis to expect, further advances, and warns the latest advance should not be seen as indicating additional liquidity or its ability to meet ongoing obligations.

The VRM arrangement is also described as a one-time advance of recovery proceeds, with repayment required promptly from any future loan or other financing, including possible debtor-in-possession financing if operations continue under Chapter 11. This framing underscores that near-term cash relief is modest and tied to future financing outcomes.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Hazel one-time advance $0.1 million One-time discretionary advance under Operational Collection Floor on April 2, 2026
Prior Hazel advances $6.0 million Aggregate advances under Operational Collection Floor as of Q3-2025 Form 10-Q
VRM advance of recovery proceeds $0.1 million One-time advance to support accounts payables on April 2, 2026
Hazel facility commitment No committed liquidity Working Capital Credit Facility has no borrowing base or obligation to fund
Material Definitive Agreement regulatory
"Item 1.01. Entry into a Material Definitive Agreement Hazel Partners Holdings, LLC Funding"
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
working capital credit facility financial
"the Company is party to a working capital credit facility with Hazel"
Operational Collection Floor financial
"a discretionary funding mechanism referred to as the Operational Collection Floor"
debtor-in-possession financing financial
"including financing from YA II PN, Ltd. or any debtor-in-possession financing in the event the Company operates under Chapter 11 protection"
Financing provided to a company while it reorganizes under bankruptcy protection that lets it keep operating, pay employees and suppliers, and pursue a restructuring plan. Think of it as a court-approved bridge loan or lifeline that typically gets paid back before older debts, so it can change who gets paid and how much investors or creditors ultimately recover; that makes it a key factor in assessing risk and potential returns.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 2, 2026

 

MSP Recovery, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

Delaware

(State or other jurisdiction
of incorporation)

001-39445

(Commission
File Number)

84-4117825

(I.R.S. Employer
Identification No.)

 

 

3525 NW 7th Street

Miami, Florida

33125

(Address of principal executive offices)

(Zip Code)

(305) 614-2222

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Class A common stock, $0.0001 par value per share

MSPR

OTC Market Group, Inc.

 

 

 

 

 

Redeemable warrants, each lot of 4,375 warrants exercisable for one share of Class A common stock at an exercise price of $50,312.50 per share

MSPRW

OTC Market Group, Inc.

 

 

 

 

 

Redeemable warrants, each lot of 4,375 warrants exercisable for one share of Class A common stock at an exercise price of $0.4375 per share

 

MSPRZ

 

OTC Market Group, Inc.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 


 

Item 1.01. Entry into a Material Definitive Agreement

Hazel Partners Holdings, LLC Funding

On April 2, 2026, MSP Recovery, Inc. (the “Company”), through its subsidiaries, entered into a letter agreement with Hazel Partners Holdings LLC (“Hazel”), in its capacity as administrative agent and lender under the Company’s existing working capital credit facility (the “Hazel Letter Agreement”) to provide $0.1 million to be used primarily for operating expenses.

As previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the “Q3-2025 Form 10-Q”), the Company is party to a working capital credit facility with Hazel (the “Working Capital Credit Facility”), which includes a discretionary funding mechanism referred to as the Operational Collection Floor. Advances under the Operational Collection Floor are made solely at Hazel’s discretion, are not subject to any commitment or minimum availability, and are conditioned on the satisfaction or waiver of applicable conditions under the governing credit documentation. The Working Capital Credit Facility does not provide the Company with committed liquidity, does not establish a borrowing base, and does not obligate Hazel to fund any amounts.

As of the filing of the Q3-2025 Form 10-Q, the Company disclosed that aggregate advances under the Operational Collection Floor had reached approximately $6.0 million, and that no remaining funding capacity was available under the facility at that time.

Pursuant to the Hazel Letter Agreement, Hazel has agreed, in its sole discretion, to make a one-time advance of $0.1 million to increase the Operational Collection Floor beyond the previously disclosed level. The advance was funded on April 2, 2026, subject to the conditions set forth in the Hazel Letter Agreement and the underlying credit agreement, including the absence of any event of default or default at the time of funding.

The $0.1 million advance is a standalone accommodation and does not reinstate, replenish, or otherwise reopen availability under the Working Capital Credit Facility or the Operational Collection Floor. Other than this specific advance, no additional funding is currently available to the Company under the Working Capital Credit Facility, and the Company has no rights to, and no reasonable basis to expect, any further advances thereunder. The Hazel Letter Agreement does not modify the discretionary nature of the facility, does not create any commitment for future funding, and does not provide the Company with access to ongoing or recurring liquidity.

The Company cautions that the receipt of the $0.1 million advance should not be viewed as indicative of Hazel’s willingness to provide future funding, the availability of additional liquidity, or the Company’s ability to meet its operating or debt service obligations beyond the funding of this specific amount.

The foregoing description of the Hazel Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the Hazel Letter Agreement, a copy of which is filed as an exhibit to this Current Report on Form 8-K.

VRM MSP Recovery Partners, LLC Advance

On April 2, 2026, the Company entered into a letter agreement (the “Advance Letter”) with VRM MSP Recovery Partners, LLC (“VRM”), pursuant to which VRM agreed to make available a one-time advance of recovery proceeds of $0.1 million to be used primarily to support the Company’s accounts payables.

The Advance Letter provides that the Company will reimburse VRM for the full amount of the Advance, together with certain amounts previously permitted to be used by MSP Recovery from recovery proceeds otherwise distributable to VRM (the “Prior Consents”), promptly upon the closing of any loan or other financing transaction by the Company or its affiliates (other than proceeds from certain short-term financing from Hazel Partners Holdings, LLC), including financing from YA II PN, Ltd. or any debtor-in-possession financing in the event the Company operates under Chapter 11 protection. The Advance Letter further contemplates that any such financing counterparty would permit the use of financing proceeds for the reimbursement described above.

The Advance is described in the Advance Letter as a one-time advance and does not imply any obligation of VRM to provide any further advances, and VRM reserved all rights under the applicable limited liability company agreement and related documents.

The foregoing description of the Advance Letter does not purport to be complete and is qualified in its entirety by reference to the full text of the Advance Letter, which is filed as an exhibit to this Current Report on Form 8-K.

 


 

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

To the extent required by Item 2.03 of Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)
Exhibits

Exhibit

Number

Description

10.1

 

Virage Letter Agreement dated April 2, 2026

10.2

 

Amendment No. 3 to Second Amended and Restated Credit Agreement dated October 2, 2024 (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on October 7, 2024)

10.3

 

Hazel Letter Agreement dated April 2, 2026

104

Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

MSP RECOVERY, INC.

Dated: April 6, 2026

 

 

 

 

 

 

 

By:

/s/ John H. Ruiz

 

 

Name:

John H. Ruiz

 

 

Title:

Chief Executive Officer

 

 


FAQ

What new funding did MSP Recovery (MSPR) obtain from Hazel Partners?

MSP Recovery entered a Hazel Letter Agreement for a one-time $0.1 million advance under its working capital credit facility. Hazel’s Operational Collection Floor remains fully discretionary, with no borrowing base or funding commitment, and this accommodation does not restore any broader availability under the facility.

Does MSP Recovery (MSPR) now have ongoing access to its Hazel credit facility?

No. The company states the $0.1 million Hazel advance is a standalone accommodation and does not reinstate or reopen availability under the working capital credit facility. It adds it has no rights to, and no reasonable basis to expect, any further advances from Hazel.

What is the purpose of the VRM MSP Recovery Partners advance to MSP Recovery (MSPR)?

VRM MSP Recovery Partners agreed to a one-time $0.1 million advance of recovery proceeds, mainly to support MSP Recovery’s accounts payables. The company must reimburse VRM for this advance, plus certain prior consent amounts, promptly from any future loan or other financing transactions it completes.

How must MSP Recovery (MSPR) repay the VRM advance and prior consents?

The Advance Letter requires MSP Recovery to reimburse VRM for the $0.1 million advance and specified prior consents promptly upon closing any loan or other financing, excluding certain short-term Hazel funding, including any debtor-in-possession financing if it operates under Chapter 11 protection.

What does the filing say about MSP Recovery’s (MSPR) future liquidity expectations?

MSP Recovery cautions that the $0.1 million Hazel advance should not be seen as indicating Hazel’s willingness to provide future funding, the availability of additional liquidity, or its ability to meet operating or debt service obligations beyond this specific amount, underscoring significant liquidity uncertainty.

Filing Exhibits & Attachments

3 documents