Professional men's golf league LIV Golf has filed for Chapter 11 bankruptcy in the United States, saying it intends to restructure its business with a $49.6 million  ($NZ84.6 million) bankruptcy loan provided by the Public Investment Fund of Saudi Arabia.

The company has between $US500 million and $1US billion in liabilities, and between $US100 million and $US500 million in assets, according to its Chapter 11 petition, filed in New Jersey.

LIV Golf said the bankruptcy will allow it to go forward with the support of a new backer, BC Partners Advisors, and transition to a player-first ownership model.

BC Partners and other potential minority investors are expected to provide exit financing and sponsor the company's debt restructuring, LIV Golf said.

LIV has been preparing for its next iteration ever since the PIF said in April that further investment in the rebel circuit no longer aligned with its strategy and that it would cut funding at the close of the 2026 season. PIF owns 100% of LIV Golf's equity, according to its bankruptcy petition.

The PIF has invested more than $US5 billion in LIV Golf since its launch in 2022 and the breakaway circuit used massive signing bonuses to poach big-name players from the PGA Tour like Bryson DeChambeau, Jon Rahm and Dustin Johnson.

Rahm, DeChambeau and Johnson are the company's top three unsecured creditors, according to the petition. Each is owed more than $US5 million.

LIV Golf said that bankruptcy is meant to keep the league in business while transitioning to an innovative player-first ownership model. The company hopes to exit from bankruptcy by early 2027.

"We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realise it," LIV Golf chief executive Scott O'Neil said in a statement.

The professional men's golf league laid off most of its workforce in August, while it worked to secure new funding.