Getty Images Files Prepackaged Chapter 11 With $433 Million Equity Plan
Getty Images Holdings, Inc. (OTC:GETY) has entered into a restructuring agreement with its majority owners and key creditors to prepare for a prepackaged Chapter 11 reorganization. Under the proposed plan, existing equity shares will be canceled, and majority shareholders will take ownership of the reorganized business. Following the announcement, the stock plummeted over 60%.
To maintain liquidity during court proceedings, consenting shareholders are providing up to $143 million in multi-draw debtor-in-possession financing. The investors have also committed about $433.2 million in fresh equity to fund the company's emergence. Under the deal, certain secured debt will convert into new first-lien obligations, while unsecured notes will be repaid in cash.
Stakeholders aim to achieve court confirmation of the plan roughly 55 days after the case begins, with emergence targeted within approximately 75 days. Control of the reorganized business will be held by majority shareholders, subject to potential dilution from a management incentive program.
Key points
- Getty Images Holdings, Inc. (OTC:GETY) reached a restructuring support agreement with key creditors and shareholders for a prepackaged Chapter 11.
- Current equity shares will be canceled, while majority shareholders will take ownership of the reorganized entity.
- The company secured up to $143 million in debtor-in-possession loan financing and $433.2 million in equity commitments for emergence.
- Targets set by the agreement include plan confirmation in about 55 days and Chapter 11 emergence within roughly 75 days.
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What is happening to existing Getty Images stock in Chapter 11?
Existing equity shares of Getty Images Holdings, Inc. will be canceled under the proposed restructuring agreement, with majority shareholders taking ownership of the reorganized company upon emergence.
How much financing is supporting Getty Images during bankruptcy?
Getty Images has secured up to $143 million in debtor-in-possession loan financing to support operations during Chapter 11, along with a $433.2 million equity commitment to fund its exit from bankruptcy.
When does Getty Images expect to emerge from Chapter 11 bankruptcy?
The timeline targets court confirmation of the restructuring plan roughly 55 days after filing, with full emergence expected within approximately 75 days.