• 30-day grace period began 1 September
• Majority equity holders could provide capital solution
• CEO has said company aiming to complete review in 4Q

Getty Images is preparing for a possible Chapter 11 bankruptcy filing amid dwindling liquidity and repeated losses in litigation over warrants, said two sources familiar with the matter.

The listed photo agency has said that it’s reviewing strategic financing alternatives and elected to enter a 30-day grace period on 1 September for interest payments on its 14% and 9.75% senior unsecured notes. Among the options Getty said it is considering is a “capital solution” provided by its majority equity holders, which includes funds connected to co-founder and chairman Mark Getty, according to filings.

Alvarez & Marsal is advising Getty, said one of the sources and a third source familiar with the matter. Guggenheim Securities and Simpson Thacher are also advising, as reported.

Getty has been under pressure to pursue a comprehensive overhaul of its capital structure as it faces significant debt amortization payments and millions of dollars in costs connected to the warrant litigation, as well as the 2028 maturities of its senior unsecured notes and revolving credit facility, which carries a 180-day springing maturity.

Speaking on Getty’s 2Q26 earnings call in August, CEO Craig Peters said that the company is prioritizing boosting liquidity and reducing debt, adding that he expects the capital structure review to run through the third and into the fourth quarter.

The company is likely trying to pressure unsecured noteholders and warrant plaintiffs to reach a settlement, said a buysider. He added that the Getty family could offer new money to the company as part of a prepackaged bankruptcy.

Getty warned in its 2Q26 10-Q that there was “substantial doubt about the company’s ability to continue as a going concern” in light of the obligations from the litigation and cash expenditures from a failed merger with rival Shutterstock that had been intended to bolster liquidity.

Getty ended June with USD 51.6m in cash and USD 30m available under its USD 150m revolving credit facility. The company drew the remaining USD 30m on the revolver in July.

In late July, a New York Supreme Court judge entered judgment in favor of a group of warrant holders seeking USD 92m. Getty reached a deal in late August to make a USD 4.15m partial payment to the plaintiffs in exchange for the group agreeing to a 60-day standstill agreement where they will not take action to enforce the judgment, according to a filing.

Over the summer, Getty appointed two independent board members with restructuring backgrounds, a move that sparked its capital structure to tumble, as reported.

Gibson Dunn is working with a group of secured creditors, while Akin has organized a group of unsecured bondholders, as reported.

Getty’s USD 295m 14% senior unsecured notes due March 2028 traded at 47 today, down from 54 on 1 September, according to MarketAxess. The USD 540m 11.25% senior secured notes due 2030 changed hands at 73.75. Getty’s EUR 440m SOFR+ 600bps term loan due 2030 was last quoted 70.5/73.3, down from the mid 70s in August, according to Markit.

Representatives for Getty, A&M, Guggenheim, Gibson and Akin didn’t return requests for comment.