---
schema_version: "secwatch.filing_event.v1"
accession: "0001213900-26-059017"
form_type: "8-K"
ticker: "MSPR"
cik: "0001802450"
company_name: "MSP Recovery, Inc."
filed_at: "2026-05-19T20:12:06+00:00"
generated_at: "2026-05-19T20:14:48.129439+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# MSP Recovery gets $188K in emergency advances; stock downgraded to OTC Pink

## Summary
- OTC Markets downgraded MSPR to OTC Pink effective May 20, 2026 due to delinquent Form 10-K filing.
- Hazel advanced $94,000 under discretionary facility; no further funding available.
- VRM advanced $94,000; condition requires appointing Nader Tavakoli as Chief Restructuring Officer.
- Company has no committed liquidity or borrowing base; future funding uncertain.
- Downgrade could reduce liquidity and market price of MSPR common stock.

## SEC filing metadata
- accession: 0001213900-26-059017
- form_type: 8-K
- ticker: MSPR
- cik: 0001802450
- company_name: MSP Recovery, Inc.
- filed_at: 2026-05-19T20:12:06+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 2.03, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1802450/000121390026059017/0001213900-26-059017-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1802450/000121390026059017/ea0291573-8k_msp.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001213900-26-059017
- JSON: https://secwatch.observer/filing/0001213900-26-059017.json
- Plain text: https://secwatch.observer/filing/0001213900-26-059017.txt

## Key facts
- Debt Financings
  MSP Recovery, Inc. incurred credit facility of $0.1 million with VRM MSP Recovery Partners, LLC.
  - Instrument: credit facility
  - Principal: $0.1 million
  - Counterparty: VRM MSP Recovery Partners, LLC
  - Event: incurrence
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1802450/000121390026059017/0001213900-26-059017-index.htm
- Material Agreements
  MSP Recovery, Inc. entered into Hazel Letter Agreement with Hazel Partners Holdings LLC valued at $0.1 million one-time advance (effective 2026-05-15).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Hazel Partners Holdings LLC
  - Value: $0.1 million one-time advance
  - Effective: 2026-05-15
  source text: On May 15, 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1802450/000121390026059017/0001213900-26-059017-index.htm
- Material Agreements
  MSP Recovery, Inc. entered into Advance Letter with VRM MSP Recovery Partners, LLC valued at One-time advance of recovery proceeds of $0.1 million (effective 2026-05-15).
  - Action: entry
  - Counterparty: VRM MSP Recovery Partners, LLC
  - Value: One-time advance of recovery proceeds of $0.1 million
  - Effective: 2026-05-15
  source text: On May 15, 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1802450/000121390026059017/0001213900-26-059017-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.