Getty Images plans to file a prepackaged Chapter 11 in the coming weeks after securing a restructuring agreement backed by its major creditor groups and commitments for up to $533m of new equity from existing shareholders the Getty family and Koch Equity Development.
The stock photography provider said in a 12 October announcement that the deal would retire $270m of senior unsecured notes, reduce interest obligations, and extend secured debt maturities. Getty expects to complete the restructuring by year end and emerge as a privately held company wholly owned by the equity investors.
The restructuring support agreement has backing from holders of 83.5% of Getty’s unsecured bonds, approximately 89% of its secured bonds and term loans, and all revolving credit facility lenders, according to the company.
Getty intends to solicit votes on its reorganization plan in the coming days before filing Chapter 11 cases limited to certain US entities. The requisite majority of creditors has committed to support the plan, it said.
Koch Equity Development has also committed up to $143m of financing to fund the restructuring. Getty said this financing and cash generated by ongoing operations would support the business through the process, with vendors paid in full...
