Getty Images plans bankruptcy filing, to go private

Oct 12 (Reuters) - Getty Images ‌said on Monday ​it ​would file for bankruptcy and go private after a restructuring agreement that the visual-content provider expects to close by the ‌end of the year.

The company plans to begin an expedited ⁠prepackaged Chapter 11 process in the coming weeks, a major reset after the collapse ‌of its planned merger ‌with rival Shutterstock amid heavy debt and growing competition from AI-generated imagery.

Once the restructuring is complete, affiliates of the Getty family and Koch ​Equity Development will own 100% of the company. The investors have also committed to provide up to $533 million of new equity, Getty ⁠said.

Holders of Getty's unsecured bonds agreed to retire $270 million of notes, while secured lenders agreed to ​reduce interest costs and extend debt maturities under the restructuring plan.

The company added that operations would continue normally and ​vendors would be paid in full ‌in the ordinary course.

Getty, which competes with Reuters and the Associated Press in providing photos and videos for editorial ⁠use, said financing from Koch Equity Development of up to $143 million would support the restructuring process.

In August, Getty withdrew its financial guidance, citing an ongoing review ⁠of strategic financing alternatives and balance-sheet management initiatives, and said it had engaged Guggenheim ​Securities to advise on those efforts.

The visual-content provider reported total debt of about $2.1 billion as of June 30, compared with a market valuation of $20.74 million as of ‌Friday's close.

Getty shares have lost about 99% of their value since returning to public markets in 2022 through a ‌special purpose acquisition company that valued the company at about $4.8 billion, after ⁠14 years as a private ‌firm.

The New York Stock ​Exchange commenced delisting proceedings against the company at the end of September.

(Reporting by Anhata Rooprai in Bengaluru; Editing by ‌Joyjeet Das)

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