LIV Golf’s bankruptcy is moving forward with the league approved to access an initial $14 million of a nearly $50 million loan from the Saudi PIF to help facilitate the expedited Chapter 11 process.
The PIF is providing $49.6 million in debtor-in-possession (DIP) financing, the first portion of which was greenlit for LIV’s use after Wednesday’s initial hearing in the New Jersey District U.S. Bankruptcy Court. Judge Michael Kaplan, who is overseeing the case, has been known to be friendly to debtors and has become popular for companies seeking quick bankruptcies, multiple bankruptcy experts told Front Office Sports.
LIV only had $15 million in cash on hand coming into the bankruptcy process, so the DIP funding is key for beginning to pay out creditors and funding the overall litigation. However, the new money still won’t be enough to fully satisfy everyone LIV owes money to, as the league’s 30 largest creditors alone—revealed in Tuesday’s initial bankruptcy filing—are owed more than $64 million combined. LIV’s total liabilities are between $500 million and $1 billion, including some eight- and nine-figure sums likely still owed to players in future contract guarantees that the league is trying to void.
