The Securities and Exchange Commission has initiated an inquiry into Getty Images' stock option grants. In a statement released toward the end of last year, the company said that the commission had requested information and that Getty was cooperating, including establishing a committee to conduct an internal investigation with the assistance of outside attorneys.

In late November 2006, Getty announced its decision to delay the filing of its report for the third quarter of 2006 until the resolution of the inquiry into its stock option grant practices.

On Jan. 5, 2007, the company released a statement saying that it did not consider itself in default of its obligation to report, because the indenture codes do not contain express covenants requiring that trustees or bondholders be provided with periodic reports.

In an effort to resolve the purported default, Getty is soliciting consents from its stockholders to an amendment to, and a waiver of, the purported default.