Lenders are in discussions about taking over Getty via a possible bankruptcy, and members of the Getty family are evaluating whether to add fresh capital. Talks are active and could change course, with no final outcome yet. Getty retained Guggenheim Securities alongside Simpson Thacher & Bartlett; on the other side, secured lenders engaged Houlihan Lokey Inc. as well as Gibson Dunn & Crutcher.
Unsecured creditors, as Bloomberg previously noted, tapped Akin Gump Strauss Hauer & Feld LLP. Representatives of Guggenheim and Houlihan said they had no comment. Attempts to reach Getty, Simpson Thacher, Gibson Dunn and Akin Gump by message went unanswered.
After not making the Sept. 1 interest payments on its unsecured notes, Getty moved into a 30-day grace period. The company said it had the funds but chose to take the grace option. In September, Moody's Ratings cut Getty's corporate family rating by two notches to Caa3 following the grace-period move, warning that liquidity could worsen without new cash or a debt workout.
At quarter end on June 30, Getty listed $51.6 million in cash and $30 million of remaining capacity on a $150 million revolving credit facility, which it then drew in full in July. Total debt stood above $1.3 billion as of June 30. An earlier S&P report said a planned deal was expected to deliver a $162 million cash benefit. Getty has pointed to the high rate backdrop, a $110.9 million litigation payment, and expenses tied to a terminated transaction as key hits to liquidity, and it also faces industry pressure from the rise of generative AI.
When businesses face big decisions, keeping your own financial plan steady helps protect growth. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
If you track companies built on licensing content, this is a real-time case study in how higher borrowing costs, one-off legal payouts, and tech shifts can pile on at once. A cautious read of these moving parts can help you set expectations for businesses with similar balance sheets and business models.
A calm, proactive approach to your investments can preserve and expand your savings. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
