Getty Images Leaves the Stock Exchange to Reduce Debt

Getty Images is initiating a special bankruptcy procedure in the US to reduce its debt. This will allow the company to continue operating while it agrees with creditors on new debt repayment terms. The process is expected to be completed by the end of the year.

After this, Getty Images will become a private company and trading of its shares on the exchange will stop. The company's owners will become companies affiliated with the Getty family and Koch Equity Development. They will provide Getty Images with up to $533 million.

Under the agreement, $270 million worth of bonds will be cancelled, while interest on the remaining loans will be reduced and their repayment terms extended.

Getty Images will continue operating as usual and does not plan to suspend payments to partners. At the end of June, the company had about $2.1 billion in debt, while at the beginning of October its market value stood at only $20.7 million.

The company returned to the stock exchange in 2022, when it was valued at $4.8 billion. Since then, its share price has fallen by about 99%. The deterioration of its financial position was preceded by the collapse of a planned $3.7 billion merger with Shutterstock.

Source: Reuters