Getty Images files for bankruptcy in the US
What's the story
Getty Images Holdings Inc has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. The company listed assets and liabilities between $1 billion and $10 billion. This move comes after a restructuring support agreement was reached, which will provide Getty with new capital and take it private.
Financial backing
Restructuring plan involves new equity investment
The restructuring plan involves a new equity investment of up to $533 million.
This investment will come from parties including members of the Getty family and affiliates of Koch Equity Development.
The company had earlier announced that these parties would be providing new equity as part of its financial restructuring efforts.
Failed merger
Bankruptcy follows failed merger with Shutterstock
Getty's bankruptcy filing comes after its planned merger with rival Shutterstock fell through.
The collapse was due to Getty's high debt and increasing competition from artificial intelligence-generated images.
Despite the bankruptcy, Getty has assured that it will continue to operate normally during this process. The company expects the restructuring process to be completed by year-end.
Supplier payments
Suppliers to be paid in full
Under the restructuring plan, Getty has assured that suppliers will be paid in full.
The company had entered a 30-day grace period after missing interest payments due on September 1 on unsecured notes.
At that time, Getty had said it had cash available for the payments but chose to use the grace period to finalize a consensual workout deal.