Getty Images Enters Prepackaged Chapter 11 and Goes Private

Getty Images Holdings and several of its US entities have filed for Chapter 11 protection in the District Court of Delaware under a "prepackaged" procedure supported by bondholders, according to Octus.

The case is numbered 26-11643, with the company estimating its assets and liabilities in the range of $1 billion to $10 billion each, a standard volume classification in US bankruptcy proceedings.

The plan includes a commitment to inject up to $533 million in new equity from affiliates of the Getty family and Koch Equity Development, along with up to $143 million in financing. Additionally, 83.5% of bondholders agreed to cancel $270 million of debt.

Getty expects to complete the restructuring before the end of the year and emerge from the proceedings as a fully private company.

What do these terms mean?

Chapter 11: A US bankruptcy procedure aimed at restructuring a company's debt and continuing its operations rather than liquidating it.

Prepackaged Plan: An agreement on a restructuring plan negotiated with creditors prior to filing for bankruptcy, shortening the duration of the proceedings.

Restructuring: Modifying debt terms or company ownership to reduce financial burdens and restore viability.

Bonds: Debt instruments issued by companies to borrow money from investors in exchange for periodic interest and repayment of the principal on a specified date.