MSP Recovery, Inc. 8-K

What Happened MSP Recovery, Inc. filed an 8-K on January 7, 2026 disclosing a letter agreement with Hazel Partners Holdings LLC (Hazel), the administrative agent and lender under MSPR’s existing working capital credit facility. Hazel agreed, in its sole discretion, to make a one-time advance of $325,000 to be used solely for operating expenses, expected to be funded on or before January 9, 2026, subject to customary conditions and the absence of any default.

Key Details

• Advance amount: $325,000 (one-time, standalone accommodation).
• Expected funding date: on or before January 9, 2026, subject to conditions in the Hazel Letter Agreement and the underlying credit documents.
• Prior status: as of MSPR’s Q3-2025 Form 10-Q, aggregate advances under the facility’s Operational Collection Floor were about $6.0 million with no remaining availability.
• Nature of funding: discretionary, does not create any commitment or reopen the facility, and does not provide ongoing or recurring liquidity.

Why It Matters This provides a small, temporary liquidity infusion for operating expenses but does not change MSPR’s lack of committed borrowing capacity under the working capital credit facility. Investors should note the advance is discretionary and explicitly not an obligation by Hazel to provide future funding, so it does not reduce the company’s stated exposure to limited available liquidity under the facility.