A Delaware judge approved interim access to the loan at Thursday's first-day hearing in Getty's prepackaged Chapter 11 case. The full facility is up to $143 million, and the plan sponsors are aiming for a combined hearing in mid-December.
Getty Images received approval from a Delaware bankruptcy judge on Thursday to borrow $85 million of interim financing from an affiliate of Koch, in the first major step of its prepackaged Chapter 11 case, according to Law360.
The money is part of a debtor-in-possession facility of up to $143 million, with Koch Equity Development or its affiliates named as lenders. The interim approval lets Getty draw the first portion while the rest awaits a final hearing. The funds will be directed to senior lenders and to support the business.
The case, No. 26-11643, is being heard in the U.S. Bankruptcy Court for the District of Delaware.
A plan agreed before filing
A prepackaged bankruptcy is one in which the company and its main creditors agree on a restructuring plan before filing, so the court process is mainly about approving it. Getty's restructuring support agreement required an interim financing order within three business days of the petition. Thursday's approval met that deadline.
Under the proposed timeline, creditor votes on the plan are due by Nov. 30, and the company is seeking a combined hearing on the disclosure statement and the plan on Dec. 14. The court has not yet set that date.
Insiders as lenders
The notable feature of the financing is its source. The lender is a plan sponsor, not an outside bank or credit fund. Insider debtor-in-possession loans give the sponsors senior, court-approved claims and influence over the case, and the plan is structured to leave control with the Getty family and Koch.
For other creditors, that structure tends to draw scrutiny at the final financing hearing, where objections over terms and priority are typically raised.
Why it matters
Getty's path through court is a test of how quickly a company can use a prepack to reset its debt while keeping existing owners in place.
What to watch
The final hearing on the financing, any objections from creditors, plan voting by Nov. 30 and the requested Dec. 14 combined hearing.