Mondee Takes Strategic Action to Position the Company for Long-Term Growth
Mondee Holdings (OTC: MOND), a travel marketplace and AI technology company, has announced a strategic restructuring plan including voluntary Chapter 11 proceedings. The company has entered into a restructuring support agreement featuring the sale of substantially all assets to a new entity owned by TCW Asset Management Company and Wingspire Capital affiliates.
The company's secured lenders have committed an additional $27.5 million in operating capital, supplementing their recent $21.5 million financing. Under the TCW bid, former executive Prasad Gundumogula will maintain a 75% equity stake and CEO position in the new entity. The Chapter 11 process, expected to conclude in early Q2 2025, will not affect Mondee's operations in Brazil, Mexico, India, and Canada.
The company will continue normal operations throughout the court-supervised process, maintaining customer and partner support without disruption. First-day motions are being filed to ensure smooth transition and maintain normal operations, including employee wages and benefits.
Mondee Holdings (OTC: MOND), un marketplace di viaggi e azienda di tecnologia AI, ha annunciato un piano di ristrutturazione strategica che include procedure volontarie di Chapter 11. L'azienda ha stipulato un accordo di supporto alla ristrutturazione che prevede la vendita di sostanzialmente tutti gli attivi a una nuova entità controllata da TCW Asset Management Company e affiliati di Wingspire Capital.
I finanziatori garantiti dell'azienda hanno impegnato ulteriori 27,5 milioni di dollari in capitale operativo, integrando il loro recente finanziamento di 21,5 milioni di dollari. Nell'offerta di TCW, l'ex dirigente Prasad Gundumogula manterrà una partecipazione azionaria del 75% e la posizione di CEO nella nuova entità. Il processo di Chapter 11, previsto per concludersi all'inizio del secondo trimestre del 2025, non influenzerà le operazioni di Mondee in Brasile, Messico, India e Canada.
L'azienda continuerà le normali operazioni durante l'intero processo supervisionato dal tribunale, mantenendo il supporto ai clienti e ai partner senza interruzioni. Vengono presentati i mozioni del primo giorno per garantire una transizione fluida e mantenere le operazioni normali, inclusi salari e benefici per i dipendenti.
Mondee Holdings (OTC: MOND), una empresa de mercado de viajes y tecnología de IA, ha anunciado un plan de reestructuración estratégica que incluye procedimientos voluntarios de Chapter 11. La empresa ha entrado en un acuerdo de apoyo a la reestructuración que implica la venta de prácticamente todos los activos a una nueva entidad propiedad de TCW Asset Management Company y afiliados de Wingspire Capital.
Los prestamistas garantizados de la empresa han comprometido 27,5 millones de dólares adicionales en capital operativo, complementando su reciente financiamiento de 21,5 millones de dólares. En la oferta de TCW, el exejecutivo Prasad Gundumogula mantendrá una participación del 75% y la posición de CEO en la nueva entidad. Se espera que el proceso del Chapter 11 concluyan a principios del segundo trimestre de 2025 y no afectará las operaciones de Mondee en Brasil, México, India y Canadá.
La empresa continuará sus operaciones normales a lo largo de todo el proceso supervisado por el tribunal, manteniendo el apoyo a clientes y socios sin interrupciones. Se están presentando las mociones del primer día para asegurar una transición fluida y mantener operaciones normales, incluidos salarios y beneficios de los empleados.
Mondee Holdings (OTC: MOND), 여행 시장 및 AI 기술 회사는 자발적인 챕터 11 절차를 포함한 전략적 구조 조정 계획을 발표했습니다. 이 회사는 TCW 자산 관리 회사와 Wingspire Capital 제휴사가 소유하는 새로운 법인에 거의 모든 자산을 매각하는 구조 조정 지원 계약을 체결했습니다.
회사의 담보 대출자는 최근 2150만 달러의 자금을 보완하는 추가 2750만 달러의 운영 자본을 약속했습니다. TCW 입찰에 따라 전 경영진 Prasad Gundumogula는 새로운 법인에서 75%의 지분과 CEO 직위를 유지합니다. 챕터 11 절차는 2025년 2분기 초에 종료될 것으로 예상되며, 브라질, 멕시코, 인도 및 캐나다에서 Mondee의 운영에는 영향을 미치지 않을 것입니다.
회사는 법원 감독 과정 전반에 걸쳐 정상 운영을 계속하며 고객 및 파트너 지원을 중단 없이 유지합니다. 원활한 전환을 보장하고 직원의 급여 및 복리후생을 포함하여 정상 운영을 유지하기 위해 첫날의 모션이 제출되고 있습니다.
Mondee Holdings (OTC: MOND), une entreprise de marché de voyages et de technologie IA, a annoncé un plan de restructuration stratégique incluant des procédures volontaires de Chapter 11. L'entreprise a conclu un accord de soutien à la restructuration qui prévoit la vente de presque tous les actifs à une nouvelle entité détenue par TCW Asset Management Company et des affiliés de Wingspire Capital.
Les créanciers garantis de l'entreprise ont engagé 27,5 millions de dollars supplémentaires en capital opérationnel, complétant leur récent financement de 21,5 millions de dollars. Dans l'offre de TCW, l'ancien cadre Prasad Gundumogula conservera une participation de 75% et la position de PDG dans la nouvelle entité. Le processus de Chapter 11, qui devrait se terminer au début du deuxième trimestre 2025, n'affectera pas les opérations de Mondee au Brésil, au Mexique, en Inde et au Canada.
L'entreprise poursuivra ses opérations normales tout au long du processus supervisé par le tribunal, maintenant le soutien aux clients et partenaires sans interruption. Des motions de première journée sont déposées pour assurer une transition fluide et maintenir les opérations normales, y compris les salaires et les avantages des employés.
Mondee Holdings (OTC: MOND), ein Reisemarkt und KI-Technologieunternehmen, hat einen strategischen Restrukturierungsplan angekündigt, der freiwillige Chapter-11-Verfahren umfasst. Das Unternehmen hat eine Restrukturierungsunterstützungsvereinbarung unterzeichnet, die den Verkauf nahezu aller Vermögenswerte an eine neue Einheit vorsieht, die im Besitz von TCW Asset Management Company und Wingspire Capital Affiliates ist.
Die gesicherten Gläubiger des Unternehmens haben zusätzliche 27,5 Millionen Dollar an Betriebskapital zugesagt, was ihre kürzliche Finanzierung von 21,5 Millionen Dollar ergänzt. Im Angebot von TCW wird der frühere Geschäftsführer Prasad Gundumogula eine 75%ige Beteiligung sowie die CEO-Position in der neuen Einheit behalten. Der Chapter-11-Prozess, der voraussichtlich Anfang des zweiten Quartals 2025 abgeschlossen sein wird, wird die Betriebsabläufe von Mondee in Brasilien, Mexiko, Indien und Kanada nicht beeinträchtigen.
Das Unternehmen wird während des gesamten gerichtsüberwachten Verfahrens den normalen Betrieb aufrechterhalten und die Unterstützung von Kunden und Partnern ohne Unterbrechung gewährleisten. Erstanträge werden eingereicht, um einen reibungslosen Übergang sicherzustellen und den normalen Betrieb aufrechtzuerhalten, einschließlich der Gehälter und Leistungen der Mitarbeiter.
- Secured $49 million total in financing ($27.5M new + $21.5M recent)
- Operations will continue without disruption during restructuring
- International entities in Brazil, Mexico, India, and Canada unaffected
- Company forced to file for Chapter 11 bankruptcy protection
- Sale of substantially all company assets required
- Significant restructuring indicates severe financial distress
Insights
The Chapter 11 filing by Mondee represents a significant restructuring event with $49 million in total secured financing (
The timing of the expected emergence in Q2 2025 indicates an expedited process, typical of pre-negotiated Chapter 11 cases. The first-day motions and debtor-in-possession financing arrangements demonstrate careful preparation to minimize operational disruption. Critical is the exclusion of international entities in Brazil, Mexico, India and Canada from the proceedings, preserving value in key growth markets.
This restructuring represents a strategic reset rather than a distressed liquidation. The deal structure, maintaining Gundumogula's significant equity position while bringing in institutional backing from TCW and Wingspire, suggests confidence in the core business model despite current balance sheet challenges. The
The 'stalking horse' bid from TCW sets a floor value while potentially attracting competing offers that could maximize creditor recoveries. The preservation of customer relationships and operational continuity through first-day motions is important for maintaining enterprise value. The quick timeline to emergence indicates strong creditor support and a well-structured reorganization plan.
The restructuring comes at a pivotal time in the travel technology sector, where AI-driven platforms are reshaping distribution models. Mondee's focus on maintaining operations through bankruptcy while restructuring its capital structure could position it to better compete in the evolving marketplace. The retention of key international operations outside bankruptcy protection is particularly strategic given the growth potential in markets like Brazil and India.
The leadership transition to Jesus Portillo as CEO, coupled with the planned post-emergence structure, suggests a hybrid approach balancing operational continuity with strategic renewal. The emphasis on employee engagement and organizational culture indicates a focus on preserving human capital, important for technology-driven travel platforms.
AUSTIN, Texas, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Mondee Holdings, Inc. (OTC: MOND) (“Mondee” or the “Company”), a leading travel marketplace and artificial intelligence (AI) technology company, today announced that it has entered into a restructuring support agreement which outlines a series of transactions that will strengthen the Company’s balance sheet and position it for long term success, including a term sheet to sell substantially all of the assets of the Company to a newly formed entity owned by, among others, affiliates of TCW Asset Management Company LLC and Wingspire Capital LLC (the “TCW Bid”). If the TCW Bid is the successful one, following the closing of the sale, Mr. Prasad Gundumogula will have a
To effect the sale of the Company to the current bidder or another party with a higher and/or better offer, the Company has voluntarily initiated Chapter 11 proceedings. The Company’s existing secured lenders will continue to support the Company throughout its Chapter 11 proceeding by committing to an additional
“Today’s announcement marks an important step forward for Mondee, our valued customers, partners, and our dedicated team as we continue to transform our business for the future,” said Jesus Portillo, newly appointed Chief Executive Officer. “With a sustainable capital structure and a structured sales process, we will be well-equipped to enhance our leadership in the travel market. We have taken decisive action to overcome past challenges and are encouraged by employee engagement, organizational culture, and our ability to deliver best-in-class products and services.”
Mondee is in the process of filing “first day” motions with the Court. The relief requested will ensure a smooth transition into Chapter 11 and the ability to maintain normal operations, including Mondee’s commitments to customers and partners and the payment of employee wages and benefits.
The Company is seeking to move expeditiously through this process and emerge from Chapter 11 in the beginning of the second quarter of 2025.
Advisors
Mondee is represented by Fried, Frank, Harris, Shriver & Jacobson LLP and Young Conway Stargatt & Taylor LLP as legal counsel, M3 Advisory Partners as restructuring advisor, and Piper Sandler & Co. as restructuring investment banker. TCW is represented by Proskauer Rose LLP and Prasad Gundumogula is represented by White & Case LLP.
Additional Information
Additional information regarding the Chapter 11 process is available at https://cases.ra.kroll.com/mondee. Parties with questions can contact the Company’s claims agent, Kroll Restructuring Administration LLC, by calling (888) 343-0753 (U.S. and Canada toll free) or +1 (646) 876-0157 (International) or emailing MondeeInfo@ra.kroll.com.
About Mondee Holdings, Inc. and Subsidiaries
Established in 2011, Mondee is a leading travel marketplace and artificial intelligence (AI) technology company with its headquarters based in Austin, Texas. The Company operates 21 offices globally across the United States and Canada, Brazil, Mexico, India, and Greece. Mondee is driving change in the leisure and corporate travel sectors through its broad array of innovative solutions. Available both as an app and through the web, the Company’s platform processes over 50 million daily searches and generates a substantial transactional volume annually. Mondee Marketplace includes access to Abhi, one of the most powerful and fully integrated AI travel planning assistants in the market. Mondee’s network and marketplace include approximately 65,000 travel experts, 500+ airlines, and over one million hotels and vacation rentals, 30,000 rental car pickup locations, and 50+ cruise lines. The Company also offers packaged solutions and ancillary offerings that serve its global distribution. For further information, visit: www.mondee.com.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by words such as: “believe,” “could,” “may,” “estimates”, “anticipates”, “might”, “should”, “expect,” “intend,” “potential,” “plan,” “seeking to”, “will”, “approximately” or, in each case, their negative or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These forward-looking statements reflect the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity and the development of the industry in which we operate may differ materially from the forward-looking statements contained herein. Any forward-looking statements that we make in this press release speak only as of the date of such statement, and we undertake no obligation to update such statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. The Company’s forward-looking statements in this press release, but are not limited to, the Company’s ability to successfully consummate its restructuring and emerge from the Chapter 11 cases, including by entrance into the Restructuring Support Agreement and ultimately satisfying the conditions and milestones set forth therein; the Company’s plans to sell its assets pursuant to chapter 11 of the Bankruptcy Code; the Company’s intention to continue operations during the Chapter 11 Cases; the Company’s belief that the 363 sale process will be in the best interest of the Company and its stakeholders; and other statements regarding the Company’s strategy and future operations, performance and prospects among others. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting the Company will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with the potential adverse impact of the Cases on the Company’s liquidity and results of operations; unpredictability of trading markets and whether a market will be established for the Company’s common stock; changes in the Company’s ability to meet its financial obligations during the Cases and to maintain contracts that are critical to its operations; the outcome and timing of the Cases and any potential asset sale; the effect of the filing of the Cases and any potential asset sale on the Company’s relationships with vendors, regulatory authorities, employees and other third parties; possible proceedings that may be brought by third parties in connection with the Cases or the potential asset sale; uncertainty regarding obtaining Court approval of a sale of the Company’s assets or other conditions to the potential asset sale; and the timing or amount of any distributions, if any, to the Company’s stakeholders.
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. In light of the significant uncertainties in these forward-looking statements, you should not rely upon forward-looking statements as predictions of future events. Except as required by law, Mondee undertakes no obligation to update publicly any forward-looking statements for any reason.
For Further Information, Contact:
Public Relations
pr@mondee.com
Investor Relations
ir@mondee.com
FAQ
What are the key terms of Mondee's (MOND) restructuring agreement in January 2025?
How much additional financing did MOND secure for its Chapter 11 restructuring?
When does Mondee (MOND) expect to emerge from Chapter 11 bankruptcy?
Which international operations of MOND are affected by the Chapter 11 filing?
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