MSP Recovery, Inc. 8-K

What Happened
MSP Recovery, Inc. (MSPR) filed an 8-K on Feb. 20, 2026 disclosing two one-time advances of recovery or working-capital proceeds totaling $0.4 million and the immediate departures of a board director and its CFO. Hazel Partners Holdings LLC provided a discretionary $0.2 million advance under the company’s existing working capital credit facility (funded Feb. 19, 2026). VRM MSP Recovery Partners, LLC agreed to a separate one-time $0.2 million advance under an Advance Letter dated Feb. 20, 2026, repayable upon the closing of any loan or other financing (including potential debtor-in-possession financing), subject to customary conditions.

Key Details

• Hazel Partners: one-time $0.2M advance funded Feb. 19, 2026; facility remains discretionary, not a committed borrowing source, and does not reopen or replenish prior availability. Previously disclosed advances under the Operational Collection Floor had reached ≈ $6.0M with no remaining capacity.
• VRM: one-time $0.2M advance dated Feb. 20, 2026; MSP must reimburse VRM from proceeds of future financing transactions (other than certain short-term Hazel financings); VRM reserved rights and made no commitment to further advances.
• Personnel changes: Ophir Sternberg resigned from the Board effective Feb. 13, 2026; Francisco Rivas‑Vasquez resigned as CFO effective Feb. 17, 2026. Both resignations were not due to disagreements with the company’s operations, policies, or practices.

Why It Matters
These items signal a small, short-term liquidity accommodation rather than new committed financing. The advances ($0.4M total) provide immediate cash for operating needs and accounts payable but do not change the discretionary nature of Hazel’s facility or create a right to future funding. The CFO and director departures are material governance changes that may affect financial leadership and oversight; the company has not indicated disagreements as a cause. Investors should view this as a limited, one-time liquidity action and note the company’s explicit caution that these advances do not imply future funding availability.