Getty Images in talks with lenders on rescue financing - report

Investing.com -- Getty Images Holdings Inc. is in confidential discussions with lenders about securing new financing for the struggling company, possibly through a debtor-in-possession loan, Bloomberg reported Monday.

The talks also involve the possibility of lenders taking control of the photo archive and stock-image company through a bankruptcy process. The Getty family is considering contributing funds as part of the discussions, according to the report.

No final decision has been reached as negotiations continue.

Getty Images has enlisted Guggenheim Securities as its investment bank and Simpson Thacher & Bartlett as legal counsel. Secured lenders have engaged Houlihan Lokey Inc. and Gibson Dunn & Crutcher, while a group of unsecured creditors has retained Akin Gump Strauss Hauer & Feld LLP, Bloomberg previously reported.

The company is currently in a 30-day grace period after missing interest payments on its unsecured notes that were due Sept. 1, according to regulatory filings. Getty Images stated it had sufficient cash to make the payments but opted to use the grace period.

Credit rating agencies have downgraded the company as financial pressures increase. S&P Global Ratings cut Getty Images to CCC in September following the collapse of its planned merger with Shutterstock Inc. in July. Moody's Ratings also lowered the company's corporate family rating by two notches to Caa3 in September after it entered the grace period, projecting further liquidity deterioration without a cash injection or debt restructuring.

As of June 30, Getty Images reported approximately $51.6 million in cash and $30 million available under its $150 million revolving credit facility. The company fully drew down the revolver in July.

Getty Images carried more than $1.3 billion in debt as of June 30, according to regulatory filings.

Shares of Getty Images have lost more than 99% in value since the company's listing.

Original Article

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