Getty Images filed for Chapter 11 bankruptcy as part of a plan to go private

Getty Images Holdings commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware on Wednesday, a step meant to carry out a restructuring that would make the company private.

The filing covers certain U.S. entities. Getty also began seeking votes on its prepackaged reorganization plan, a move meant to lock in formal sign-off, the company said. Members of the Getty family, through affiliated entities, and affiliates of Koch Equity Development, the investment arm of Koch Inc., have pledged as much as $533 million of fresh equity capital. They would own 100% of the reorganized company. Getty anticipates the overhaul will be finished before the year ends, once customary regulatory approvals are in hand.

"Today's filing is a procedural step to implement the financial restructuring previously announced," Getty Images CEO Craig Peters said in a statement. He said the process "addresses our capital structure and certain non-operating liabilities."

Getty said it will carry on with normal business operations and does not foresee disruption for vendors, employees, customers, partners or contributors. The company has filed motions with the court to meet commitments to employees, serve customers and pay vendors before and after the filing. A Koch Equity Development affiliate would provide up to $143 million in financing, in addition to cash from operations.

Under the plan, holders of Getty's Class A common stock would not receive or retain any property on account of those interests, the company said. The stock trades on the OTC Pink market under the ticker GETY.

Getty estimated in its court filing that both its assets and its liabilities fall between $1 billion and $10 billion, according to Bloomberg. The filing came after extended talks, with the company weighed down by large borrowings while customers shifted toward artificial-intelligence image tools and away from licensed stock pictures, according to Bloomberg. Bloomberg also said Getty had skipped its Sept. 1 interest payments on its unsecured notes, which started a 30-day grace period. According to Bloomberg, the company said at that point that funds were available to cover what was owed, yet it preferred to spend the extra time reaching a negotiated, consensual settlement.

Getty reached the restructuring agreement with its stakeholders on Oct. 12, roughly three months after its board voted to terminate a planned $3.7 billion merger with Shutterstock. The U.K.'s Competition and Markets Authority had conditioned approval on a sale of Shutterstock's editorial business, and Getty's board declined that condition.

Under the agreement, which the company disclosed on Oct. 12, noteholders representing 83.5% of the unsecured bonds agreed to retire $270 million of senior unsecured notes. Holders of about 89% of the secured bonds and term loans, along with all revolving credit facility lenders, agreed to reduce interest obligations and extend maturities.