Getty Images Files for Chapter 11 Under Plan for Up to $533 Million in Equity

Getty Images began Chapter 11 proceedings for certain US entities on Wednesday, moving to implement a financial restructuring announced last week. The company also launched a process to seek formal approval of its reorganisation plan, according to its announcement and Reuters.

The plan includes up to $533 million in new equity from Getty-family entities and affiliates of Koch Equity Development, alongside a reduction in debt. Getty expects to emerge as a privately held company owned by those investors.

To support the process, the company expects financing of up to $143 million from a Koch Equity Development affiliate, in addition to cash generated by ongoing operations.

Getty said it would continue operating normally and did not anticipate disruption for contributors, customers, employees, partners or vendors. Those are the company’s expectations, not a guarantee of the outcome.

The filing is a new step in an existing restructuring, rather than an announcement that the business is closing. Getty aims to complete the process by year-end, subject to customary regulatory approvals; the proposed funding and ownership changes are not yet completed.

Sources: Reuters report via MarketScreener; Getty Images restructuring announcement.

Archival photo: Getty Images gallery, London, 2015. Philafrenzy / Wikimedia Commons, CC BY-SA 4.0. Cropped to 16:9 by Morval Universal; cropped image licensed under CC BY-SA 4.0.