Getty Images files for bankruptcy to restructure its debt

Getty Images, the U.S. photography company, announced Wednesday that it has initiated a voluntary Chapter 11 bankruptcy proceeding as part of a previously announced plan to restructure its debt and transform the company into a privately held firm.

"The company has launched a solicitation process for formal approval of the prepackaged plan of reorganization and, to implement the plan in the most efficient manner, has commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware... for certain of its US entities," Getty Images stated in a press release.

The company, which partners with AFP and other media companies, announced this month that it had reached an agreement with its major lenders to proceed with a prearranged bankruptcy process.

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The agreement calls for an investment of up to $533 million by members of the Getty family and subsidiaries of Koch Equity Development, with the aim of reducing the company's debt.

Getty Images reported on Wednesday that it "has moved forward to implement its previously disclosed financial restructuring," adding that it expects to complete the process." It also indicated that it expects to complete the process "by year end after customary regulatory approvals are obtained."

The company assured that it will continue to operate normally during the process. To this end, it has secured financing of up to $143 million from Koch, in addition to the cash generated by its regular business operations.

Once the restructuring is complete, Getty Images will become a privately held company owned by private equity investors, as announced by the company.