Getty Images, facing NYSE delisting, restructures debt ahead of Chapter 11 filing

Troubled stock image agency Getty Images reached a restructuring agreement with its principal investors and creditor groups and plans to file an expedited, prepackaged Chapter 11 case within weeks. The company expects to complete the restructuring by year-end and emerge as a privately held company.

Among the keys to announceement, Getty-family entities and Koch Equity Development affiliates committed up to $533 million in new equity, and holders of 83.5% of Getty’s unsecured bonds agreed to retire $270 million of senior unsecured notes. Approximately 89% of secured bond and term-loan holders, plus every revolving-credit lender, agreed to reduce interest obligations and extend maturities.

“Getty Images is uniquely trusted around the world as the unparalleled leader in premium visual content,” said Mark Getty, Co-Founder and Chairman of the Board. “This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead. I am pleased to continue our strong partnership with Koch Equity Development and the lender groups to provide capital structure improvements that will enable us to build on our solid foundation and seize new growth opportunities.”

Koch will provide up to $143 million in restructuring financing. The Getty and Koch investors will own 100% of the reorganized company after it exits Chapter 11.

Getty says employees, contributors, customers, partners and vendors should remain unaffected, with vendors paid normally during the process.

Back in early October, Getty disclosed the New York Stock Exchange has begun proceedings to delist its Class A shares because of an “abnormally low selling price.” Trading was immediately suspended, and Getty said it will not appeal. Getty shares began trading on the OTC Pink Limited Market under the same GETY symbol on Sept. 30.