Getty Images to File for Bankruptcy, Go Private Via Koch Deal

Getty Images is filing for bankruptcy and going private through a restructuring deal with the Koch family's company.

Koch Equity Development and members of the Getty family committed to invest $533 million in equity in Getty to facilitate the company going private and filing for Chapter 11 bankruptcy.

In addition, noteholders representing 83.5% of Getty's unsecured bonds have agreed to reduce outstanding debt through the retirement of $270 million of outstanding unsecured notes.

Holders representing about 89% of Getty's secured bonds and term loans and 100% of revolving credit facility lenders have agreed to reduce interest obligations and extend debt maturities on Getty's secured debt.

The agreements are part of a restructuring deal that is designed to improve Getty's balance sheet and allow the company to go private. Koch Equity Development and the investing Getty family members will own 100% of the reorganized Getty.

Getty plans to solicit approval of the plan and then begin a prepackaged Chapter 11 bankruptcy filing process in the coming weeks.

The requisite majority of creditors have committed to vote in favor of the plan, Getty said. The restructuring is slated to be complete by year end.

Getty will continue to operate normally through the restructuring process, supported by financing from Koch, which could be as much as $143 million.