This is part of the goal to revive the league without capital from Saudi Arabia. This move is predicted after Saudi Arabia's Public Investment Fund (PIF) suddenly terminated financial support when this season ended.
The last event of LIV Golf took place last month in Indiana.
4 of the creditors have filed lawsuits because they have not been paid.
LIV said they agreed with the restructuring plan with BC Partners as the main source of capital.
This process gives us the structure and time needed to carry out a breakthrough deal, while opening a new chapter for LIV Golf," CEO Scott O'Neil shared in a press release.
O'Neil once said that the "LIV Golf 2.0" model will grant majority ownership to golfers and apply a shortened schedule.
The tournament will expand its scale from 57 to 75 golfers and for the first time apply the cut-out rule after 54 holes. In addition, the tournament will also organize qualifying rounds taking place on Monday.
O'Neil added that the national team model will be built on the basis of nationality, and LIV will continue to exploit its successful markets in Australia, South Africa and Asia.
However, this new version will only be a faint shadow compared to what LIV promised when it debuted in June 2022 – the time they spent hundreds of millions of USD in contract bonuses to attract top names from the PGA Tour.
Spending exceeded the 5 billion USD mark before PIF announced the suspension of capital injection in April.
The future of the biggest stars still attached to LIV - most notably Jon Rahm and Bryson DeChambeau - is still undecided.
Rahm, DeChambeau, Dustin Johnson and Cameron Smith are the four largest creditors listed in the filing. Of the top 30 creditors announced by LIV, 14 are golfers.
The file only lists "unsecured debts" - with Rahm at the top of the list at nearly $7.5 million - not the total amount of debt.
LIV estimates its assets in the range of 100 million to 500 million USD, while liabilities range from 500 million to 1 billion USD.
Louisiana is also on the list of major creditors (1,220,000 USD).
LIV Golf postponed the event in Louisiana immediately after PIF announced the end of support. The event in Michigan was also cancelled, and the team championship was merged into the final event in Indiana.
LIV Golf said PIF agreed to provide $49.6 million in financing in the form of "credit for operating debtors" (DIP) through the DIP credit agreement, depending on court approval.
BC Partners L.P. - the credit business of BC Partners (headquartered in the UK) - and other minority investors (if any) will provide capital for LIV to escape bankruptcy and continue operations.
LIV said they plan to complete the bankruptcy process and launch a new version of the tournament as early as 2027.
O'Neil said that LIV Golf's goal is "to add, not to compete" (with other tournaments).
This phrase is displeasing to the more stable tournament systems, because of the disruptions that LIV Golf caused under former CEO Greg Norman – who believed that golfers should be allowed to compete in any tournament, as long as they still ensure full participation in LIV's schedule.
Chapter 11 (Chapter 11) is often known as the bankruptcy process towards restructuring; this process allows debtors to continue operating the business, even borrowing new capital if approved by the court.
