Getty Images files for bankruptcy in plan to cut debt and go private
The photo agency's pre-agreed Chapter 11 plan is backed by the Getty family and Koch. Shareholders are set to get nothing, but the business runs as normal.
Getty Images, one of the world's biggest photo agencies, filed for Chapter 11 bankruptcy protection in Delaware on Wednesday to carry out a pre-agreed plan to restructure its debt and become a private company.
Under the deal, reached with its majority shareholders and lenders on 12 October, members of the Getty family and affiliates of Koch Equity Development will invest up to $533m. A Koch affiliate is also providing up to $143m in financing to keep the company running during the process, according to its filing with the US Securities and Exchange Commission.
Getty says it will operate normally and has asked the court for permission to keep paying employees, suppliers and the photographers and other contributors who supply its images. Existing shares would be cancelled, and current shareholders are expected to receive nothing. The company had already been warned that its shares would be removed from the New York Stock Exchange after they fell below $1.
Creditors have until 30 November to vote on the plan, and Getty expects to complete the restructuring by the end of the year, subject to regulatory approvals.