Getty Images Goes Private via Prepackaged Chapter 11 Bankruptcy

Getty Images announced Monday that it will go private through an expedited prepackaged Chapter 11 bankruptcy process. The restructuring deal aims to reduce company debt and raise new capital, with completion expected by the end of the year.

Under the agreement, affiliates of the Getty family and Koch Equity Development will invest up to $533 million in new equity to eventually own 100% of the reorganized company. The plan includes the retirement of $270 million in unsecured bonds and agreements from secured lenders to lower interest costs and extend debt maturities.

This financial pivot follows the collapse of a $3.7 billion merger with Shutterstock. That deal was abandoned after the Competition and Markets Authority of Britain demanded that Shutterstock divest its editorial business as a condition for approval.