LIV Golf Creditors Face $100M in Claims, Just $2M to Split

LIV Golf's unsecured creditors are facing a grim future, as the league prepares to wind down operations after filing for Chapter 11 bankruptcy. According to bankruptcy attorney John J. Sparacino, the chances of recovering funds from these creditors are slim. The league has $100 million in claims from unsecured creditors, but only $2 million set aside for their recovery.

LIV's chief restructuring officer, David Orlofsky, revealed during a creditors meeting that this $2 million "pot plan" could potentially grow. However, given the current outlook, it is likely to remain small. The Saudi Public Investment Fund (PIF) is the largest creditor, having provided $500 million in secured loans. The PIF could theoretically allocate more funds to unsecured claims, but experts doubt this will happen.

Potential sources of additional funds for unsecured creditors could come from claims against the PIF, third parties, and LIV employees. The creditors committee, represented by Willkie Farr & Gallagher and Fox Rothschild, aims to maximize value for all creditors. Notable claimants include IMG Media, GSE Worldwide, Rick Shiels, the state of Louisiana, and Fresh Tape Media.

Joe Bain, co-chair of Jones Walker's bankruptcy team, believes that unsecured creditors are unlikely to receive any significant recoveries. The next creditors committee meeting is scheduled for November 20. An unconventional option for creditors could be seeking to recover funds from the seven LIV executives who received over $15.6 million in retention bonuses in June and August.