MSP Recovery, Inc. 8-K

What Happened
MSP Recovery, Inc. (MSPR) filed an 8-K (Item 1.01) disclosing a letter agreement with Hazel Partners Holdings LLC, the administrative agent/lender under MSPR’s existing working capital credit facility, under which Hazel agreed to a one-time $300,000 advance. The amount was funded on January 20, 2026, and is designated solely for operating expenses. Funding was subject to the conditions in the letter and underlying credit agreement, including the absence of any event of default at the time of funding.

Key Details

• Advance amount: $300,000, funded January 20, 2026.
• Lender: Hazel Partners Holdings LLC (administrative agent under MSPR’s Working Capital Credit Facility).
• Context: As of MSPR’s Q3-2025 Form 10‑Q, aggregate advances under the facility’s Operational Collection Floor had reached ~$6.0 million and no remaining capacity was available.
• Nature of funding: One-time, discretionary accommodation that does NOT reinstate, replenish, or reopen the facility’s availability; no commitment or right to future advances.

Why It Matters
This provides a small, immediate cash inflow for operating needs but does not change the company’s lack of committed liquidity under its working capital facility. Investors should note the advance is discretionary and standalone — it does not create ongoing access to liquidity or obligate Hazel to provide future funding. The disclosure is material for assessing MSPR’s near-term cash flexibility and financing risk.