Getty Images put its existing shareholders in line to lose their stakes as it began Chapter 11 proceedings for certain U.S. entities on Oct. 21 to cut debt and shift ownership.
The proposed plan would cancel existing shares without payment. Affiliates of the Getty family and Koch Equity Development would own the reorganized company, subject to a management incentive plan.
The restructuring agreement includes an equity commitment of up to about $533 million. Getty’s securities filing says that amount includes bankruptcy financing and about $100 million of existing investor debt that would be converted into equity, so it does not all represent new cash. Getty said a Koch Equity Development affiliate would provide up to $143 million in financing during the court process.
Holders of $270 million in senior unsecured notes would share approximately $170.2 million in cash under the plan. Specified term-loan and senior secured note claims not held by the majority shareholders would move into debt with later maturities and a lower interest rate. Revolving loans would move to an amended revolving facility, while secured claims held by the majority shareholders would convert into equity. Certain subordinated claims tied to public warrants and related litigation would receive no distribution.
In its second-quarter filing, Getty reported $51.6 million in cash and cash equivalents as of June 30 and warned that its continued operation was in doubt. It cited litigation payments, costs tied to its terminated Shutterstock merger and high interest expense.
Getty said it expects to keep serving customers and paying vendors during the proceedings. It has begun seeking formal votes on the plan. As of the Oct. 12 restructuring agreement, consenting parties held about 89% of secured funded debt claims, 100% of revolving loans and 83.5% of unsecured notes, excluding notes held by consenting shareholders or affiliates.
The agreement sets a milestone for an interim financing order within three business days of the Chapter 11 filing, subject to court availability and possible extensions. Getty aims to complete the restructuring by the end of 2026, pending court proceedings and required regulatory approvals.
