Getty Images plans restructuring with investment of up to $533 million and cancellation of shares
Key Facts
Getty Images announced a restructuring plan on October 12, 2026, backed by an investment commitment of up to $533 million from entities affiliated with the Getty family and Koch Equity Development, according to a company statement filed with the U.S. Securities and Exchange Commission. The company intends to implement the plan through a bankruptcy filing limited to certain U.S. entities, paving the way to take the company private. The agreement provides for the cancellation of existing equity interests, with holders receiving no distributions on those interests if the plan is approved. The company said the proceedings aim to address "non-operating legal liabilities" while preserving the strength of its operating business. It added that it intends to continue operating as usual during the proceedings and pay suppliers in full in the ordinary course of business.
The investment commitment includes about $100 million in pre-bankruptcy debt held by major shareholders, according to the company's regulatory filing. This debt will convert into equity upon emergence from the proceedings under the agreed financing arrangements. Koch Equity Development will provide up to $143 million in financing to support the restructuring, alongside cash generated from operations. The revolving credit facilities will also be amended to become a $150 million credit line, according to the filing. The agreement provides for repayment of the amount drawn on this line, leaving it undrawn when the company emerges from the proceedings.
For creditors, the plan includes extinguishing outstanding unsecured notes with a face value of $270 million, according to the company's statement. In return, holders of these notes will receive an aggregate cash payment of about $170.2 million upon completion of the plan, according to the regulatory filing. When announced, the agreement had the support of holders representing 83.5% of the unsecured notes. Holders representing about 89% of the secured notes and term loans also agreed to reduce interest obligations and extend secured debt maturities. The company said lenders under the revolving credit facility support the agreement at a rate of 100%.
The announcement followed a 2.5% year-on-year decline in Getty Images' second-quarter revenue, according to its earnings results. Its net loss in the second quarter of 2026 was about $85.8 million, compared with a loss of $34.4 million in the corresponding period of 2025. The company linked the increase in interest expense to higher borrowing rates following refinancing. It added that additional debt raised in preparation for the canceled merger also contributed to the increase in that expense. The company had withdrawn its financial outlook in August while reviewing financing alternatives and managing its balance sheet, according to Reuters.
Reuters placed the restructuring in the context of the company's debt burden and growing competition from AI-generated images, following the failed merger with Shutterstock. Britain's Competition and Markets Authority had conditionally approved the merger, according to its statement on Getty's abandonment of the deal. The authority said its approval required the sale of Shutterstock's editorial business. It described Getty's decision to abandon the merger as a commercial choice made by the company. According to Getty's results, preparations for the deal had included raising additional debt before the merger for which it was raised was canceled.
In the market, GETY shares closed at $0.0147 on October 12, 2026, the day the restructuring plan was announced, according to EL7 data. The shares had closed at $0.0465 on October 9, 2026. Before the announcement, the New York Stock Exchange had suspended trading in the shares and begun delisting proceedings because the share price had fallen to levels the exchange described as "abnormally low," according to the company's filing. Getty said it does not intend to appeal the exchange's decision. The shares began trading over the counter on the Pink Limited Market on September 30, 2026, under the ticker GETY.
Under the original contractual timetable, October 21, 2026, was set as the deadline to begin soliciting creditor votes and commence bankruptcy cases. The agreement targets a court order confirming the plan within no more than 55 calendar days of the cases commencing. It also targets the restructuring taking effect within no more than 75 calendar days of the proceedings commencing, according to the regulatory filing. These deadlines are subject to provisions allowing them to be extended or waived with the consent of the parties required under the agreement. The company said it expects to complete the restructuring by year-end.