MSP Recovery Inc. was valued at almost $33 billion prior to going public last month, making the healthcare-litigation company the most expensive US SPAC deal ever, at least on paper. The excitement didn’t last.
MSP is now worth a more modest $4.3 billion after the shares collapsed more than 85% since its blank-check merger closed and regular trading began, and the drama didn’t end there. Just days after listing, MSP warned its ability to continue as a going concern was in substantial doubt. Nomura Holdings Inc. and Keefe, Bruyette & Woods Inc. (a Stifel Financial Corp. subsidiary) accepted $45 million in promissory notes – IOUs to you and me – in lieu of their advisory fees, because MSP lacked cash to pay them.