Getty Images is filing for bankruptcy and going private in a $533 million Koch deal

Getty Images announced Monday that it has reached a restructuring agreement with its major financial stakeholders, under which the company plans to file for prepackaged Chapter 11 bankruptcy and go private, with members of the Getty family and affiliates of Koch Equity Development committing up to $533 million in new equity.

Under the restructuring support agreement, the Equity Investors — the Getty family entities and Koch Equity Development affiliates — would own 100% of the reorganized company upon emergence from bankruptcy, the company said. Noteholders representing 83.5% of Getty's unsecured bonds have agreed to retire $270 million in outstanding senior unsecured notes, while holders representing approximately 89% of the company's secured bonds and term loans, and 100% of revolving credit facility lenders, have agreed to reduce interest obligations and extend debt maturities.

Getty Images said it intends to seek creditor approval of its reorganization plan within days, after which the formal Chapter 11 filing would follow in the weeks ahead. The restructuring is expected to be completed by the end of the year. Koch Equity Development will provide up to $143 million in financing to fund the process. The filing will be limited to certain U.S. entities.

Getty Images said day-to-day operations would not be disrupted by the proceedings, with vendors receiving full payment as usual and no adverse effects anticipated for employees, contributors, customers, or partners.

"This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead," Getty Images co-founder and Chairman of the Board Mark Getty said in a statement. Chief Executive Officer Craig Peters said the deal reflects "the steadfast support of the Getty family, Koch Equity Development, and our lenders."

Mike Harris, senior managing director and co-head at Koch Equity Development, said in a statement that the investment "will provide Getty Images with a firm financial foundation and greater flexibility to continue investing in its employees, customers, contributors, and future growth." Koch Equity Development has been a backer of Getty Images since 2018, according to The Hollywood Reporter.

The planned bankruptcy filing comes roughly three months after Getty Images voted to terminate its planned $3.7 billion merger with Shutterstock after the U.K.'s Competition and Markets Authority conditioned its approval on a sale of Shutterstock's editorial business. Getty's board declined to accept that condition. Following the collapse of the merger, Getty hired Guggenheim Securities to evaluate strategic financing alternatives.

An investor presentation released Monday by Getty Images showed that its iStock eCommerce unit has been contending with softening demand, even as the company expects its editorial image division to keep expanding.