Getty Images, one of the world’s leading providers of editorial photographs and videos, plans to file for bankruptcy as mounting debt and competition from artificial intelligence generated images put pressure on its business.
The company said on Monday it would begin an expedited, prepackaged Chapter 11 bankruptcy process in the coming weeks as part of a restructuring agreement expected to be completed by the end of the year, according to a Reuters report.
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The move marks a major shift for the visual content provider after its planned merger with rival Shutterstock collapsed, leaving the company to pursue other options to address its financial difficulties.
Under the restructuring plan, affiliates of the Getty family and Koch Equity Development will own 100 percent of the company. The investors have also committed to providing up to $533 million in new equity to support the business.
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Getty said holders of its unsecured bonds had agreed to retire $270 million in notes, while secured lenders would reduce interest costs and extend debt maturities. The company added that its operations would continue as normal during the process and that vendors would be paid in full in the ordinary course of business.
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Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.
