MSP Recovery, Inc. 8K

MSP Recovery and affiliates granted Virage Recovery Master LP a first-priority security interest in substantially all of their assets under an amended and restated security agreement securing Virage’s return under a prior Master Transaction Agreement, replacing the existing security agreement and adding detailed collateral, covenant, and enforcement terms.

On September 11, 2023, MSP Recovery, LLC, MSP Recovery, Inc. (the public company parent), Lionheart II Holdings, LLC, and other affiliates entered into an Amended and Restated Security Agreement with Virage Recovery Master LP, replacing a prior security agreement and granting Virage a first-priority lien on substantially all of each grantor’s assets (subject to defined excluded property and permitted liens) as collateral to secure the “VRM Full Return” and related fees under the Master Transaction Agreement and its amendment. The collateral package includes all accounts, securities, deposit accounts (other than excluded accounts), general intangibles, claim recovery rights, LifeWallet-related assets and revenues, proceeds of certain financings (subject to carve-outs), and rights under a Tax Receivables Agreement, with detailed perfection, control, and delivery requirements for pledged securities, investment property, instruments, deposit accounts, and other collateral types. The agreement conditions the extension of the final payment date of the VRM Full Return on execution of this security agreement, imposes covenants limiting transfers of collateral and increases to the 2023 operating budget, requires that cash from Subrogation Holdings, LLC be upstreamed first to a specified reserve account and then to Virage until the VRM Full Return is paid in full, and defines trigger events (including bankruptcy, going-concern audit opinions, cross-defaults over $100,000, and uncured breaches) that allow Virage to exercise broad enforcement and remedial rights over the collateral.

Filing Facts

CIK

1802450

Ticker

-

Form

8K

Source Type

sec

Accession

0001213900-26-077545

Alert Tier

7