LIV Golf Seeks to Begin Liquidation in Early 2027
After the plan is approved, it will take months or years for the process to play out.
LIV Golf is reportedly preparing to begin liquidation proceedings as early as January 2027, according to the league's recent Chapter 11 plan submitted to the New Jersey bankruptcy court. A hearing to review the league's disclosure statement for implementing the wind-down of operations is scheduled for November 24, with a confirmation hearing for the final plan approval set for January 7.
In the interim, the plan must be presented and approved by Saudi Public Investment Fund (PIF) and LIV's other creditors. However, there is more than $100 million in unsecured claims, and the current $2 million pool (funded by the PIF) for recovery is insufficient. All unsecured creditors, including players, contractors, and vendors, are grouped together.
The effective date of the plan is yet to be determined, with the PIF being the largest creditor due to the $495 million secured loan it provided to finish the 2026 season. The sovereign wealth fund has invested over $5 billion in LIV since its launch in 2022, and contributed $49.6 million in debtor-in-possession financing to fund the bankruptcy process.
If unsecured creditors reject the Chapter 11 plan, Judge Michael Kaplan retains the power to approve it if deemed fair and equitable to the rejecting class of creditors. The wind-down trust, operated by a trustee selected by the PIF, will oversee creditor payments, resolve outstanding claims, and handle remaining legal and financial matters, with the trust terminating no later than five years after the plan's effective date.
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