Key insights
- LIV Golf is preparing for potential bankruptcy in the US after the Saudi Public Investment Fund withdrew its $5 billion financial support. The league is seeking new investors and considering relocating its headquarters to the US to leverage Chapter 11 bankruptcy laws. This news has a slightly negative influence on the US market as it reflects potential instability in investments linked to Saudi Arabia.
Investing.com -- LIV Golf is preparing for a potential bankruptcy filing in the United States if it cannot secure new funding, according to a report from Bloomberg News, citing sources familiar with the matter. The league’s management is making contingency plans for a possible collapse when the current season concludes in late August.
The Saudi Public Investment Fund, which has invested approximately $5 billion in LIV Golf over four years, has withdrawn its financial support from the league.
In response to the funding crisis, LIV Golf has retained law firm Gibson Dunn & Crutcher and investment bank Ducera Partners to assist in locating new investors. The league is developing a business plan to present to potential backers.
LIV Golf is also exploring a relocation of its headquarters to the United States. This move would position the league to utilize Chapter 11 bankruptcy restructuring laws, which offer protections for assets against foreign creditors.
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