Sept 10 (Reuters) - LIV Golf said on Thursday that a U.S. bankruptcy court granted interim approval of its first-day Chapter 11 motions, allowing the professional men's golf league to access $14 million of debtor-in-possession financing and continue pursuing a recapitalization plan backed by BC Partners Credit.
The U.S. Bankruptcy Court for the District of New Jersey also authorized LIV Golf to keep paying employee wages and benefits, maintain certain employee programs, and make some payments to vendors
and other business partners, the league said.
The approvals give the Saudi Arabia-backed circuit short-term liquidity as it seeks to restructure its operations and negotiate with players over their participation in the league after it emerges from bankruptcy.
LIV Golf filed for Chapter 11 protection in New Jersey on Tuesday, beginning a court-supervised restructuring process that the company has said it hopes will be completed in early 2027.
The league entered bankruptcy with several high-profile players owed millions of dollars, according to court filings. It has sought to reassure players, employees and commercial partners that it intends to continue operating while it reorganizes.
LIV said it has access to a total of $49.6 million in debtor-in-possession financing, a type of bankruptcy loan designed to fund a company's operations during Chapter 11 proceedings. The interim order permits access to the first $14 million, pending a final hearing.
Chief Executive Scott O'Neil said the rulings marked "important momentum" for the league's proposed recapitalization, which is supported by BC Partners Advisors LP's credit business.
LIV said it would continue discussions with players about a "go-forward" league and plans to return to court on Oct. 7 to seek final approval of its first-day requests and further relief supporting the restructuring.
The company said its objective was to emerge from Chapter 11 early next year and begin what it called the next phase of the league in 2027.
LIV Golf launched in 2022 with funding from Saudi Arabia's Public Investment Fund and lured leading players from the PGA Tour with lucrative contracts. Its rise deepened divisions in men's professional golf, though negotiations over a broader deal between the PGA Tour and the PIF have yet to produce a final agreement.
(Reporting by Carlos Méndez in Mexico City and Rory Carroll in Los Angeles; Editing by Rashmi Aich and Christopher Cushing)
