From GlobeNewswire: 2025-04-10 19:26:00

MSP Recovery, Inc. (NASDAQ: MSPR) has announced a strategic term sheet with Hazel Partners Holdings, LLC and Virage Capital Management to restructure transactions aimed at reducing costs, deleveraging debt, and focusing on core business goals. The Company will receive $9.75 million in bridge funding and up to $25 million in working capital for a New Servicer entity. The restructuring is expected to be completed by April 30, 2025, pending regulatory approvals and shareholder consent.

The transactions include Hazel providing up to $25 million in operational funding to the New Servicer, $9.75 million in bridge funding to the Company, and an enhanced servicing operation focused on recovering claim rights. Virage will receive a 43% equity interest in MSP Recovery in exchange for waiving claims against the Company. Additionally, $144 million of debt will be converted into shares of the Company’s Class A Common Stock.

MSP Recovery’s corporate restructuring plan includes extending the deadline for debt obligations with Yorkville to November 30, 2026. These strategic actions are aimed at reducing legacy liabilities and providing a sustainable platform for the Company’s future growth. John H. Ruiz, Founder, and CEO of MSP Recovery, expressed confidence in the partnerships and funding secured, positioning the Company for long-term success.



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