LIV Golf filed for bankruptcy on Tuesday—an expected step in the league’s fight for survival after the Saudi PIF decided to end its funding this year.
LIV is voluntarily entering a court-supervised Chapter 11 restructuring process in the New Jersey District U.S. Bankruptcy Court. The move comes alongside the announcement of a restructuring support agreement with BC Partners Credit, the London- and New York-based firm that is exploring a “recapitalization transaction” with LIV.
The bankruptcy and corporate restructuring are intended to preserve LIV’s existence as the league attempts to transition to a new ownership model in which players are majority equity holders. LIV “remains in advanced discussions” with players about next steps, according to Tuesday’s announcement.
LIV advisor Gene Davis, chairman of an independent board of directors that was created after the PIF announced its exit, said LIV “reviewed all available options and believe today’s actions reflect the most responsible path forward for the League and its stakeholders.” LIV CEO Scott O’Neil said, “This process gives us the structure and time to pursue a landmark transaction and begin the next chapter of LIV Golf.”
LIV’s proposed transaction with BC Partners remains subject to court and stakeholder approval.
