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Nicklaus Companies Files for Chapter 11 After $50 Million Defamation Loss

The Delaware filing is intended to preserve operations during a challenge to a $50 million Florida defamation verdict.

Overview

  • Nicklaus Companies and certain subsidiaries commenced voluntary Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware.
  • The company says business will continue during restructuring and it is exploring an appeal of the jury decision.
  • A Palm Beach County jury in October found the company liable for defamation and awarded Jack Nicklaus $50 million, while clearing Howard Milstein and Andrew O’Brien of personal liability.
  • Bankruptcy filings list liabilities between $500 million and $1 billion, and the firm is seeking up to $7 million in debtor-in-possession financing from FundNick LLC at 8.5% interest.
  • The defamation case centered on claims the company spread false statements about Nicklaus considering a $750 million LIV Golf role and questioning his fitness to run the business.