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 entit脿 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 manterr脿 una partecipazione azionaria del 75% e la posizione di CEO nella nuova entit脿. Il processo di Chapter 11, previsto per concludersi all'inizio del secondo trimestre del 2025, non influenzer脿 le operazioni di Mondee in Brasile, Messico, India e Canada.
L'azienda continuer脿 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 tecnolog铆a de IA, ha anunciado un plan de reestructuraci贸n estrat茅gica que incluye procedimientos voluntarios de Chapter 11. La empresa ha entrado en un acuerdo de apoyo a la reestructuraci贸n que implica la venta de pr谩cticamente 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 d贸lares adicionales en capital operativo, complementando su reciente financiamiento de 21,5 millones de d贸lares. En la oferta de TCW, el exejecutivo Prasad Gundumogula mantendr谩 una participaci贸n del 75% y la posici贸n de CEO en la nueva entidad. Se espera que el proceso del Chapter 11 concluyan a principios del segundo trimestre de 2025 y no afectar谩 las operaciones de Mondee en Brasil, M茅xico, India y Canad谩.
La empresa continuar谩 sus operaciones normales a lo largo de todo el proceso supervisado por el tribunal, manteniendo el apoyo a clientes y socios sin interrupciones. Se est谩n presentando las mociones del primer d铆a para asegurar una transici贸n fluida y mantener operaciones normales, incluidos salarios y beneficios de los empleados.
Mondee Holdings (OTC: MOND), 鞐枆 鞁滌灔 氚 AI 旮办垹 須岇偓電 鞛愲皽鞝侅澑 毂曧劙 11 鞝堨皑毳 韽暔頃 鞝勲灥鞝 甑“ 臁办爼 瓿勴殟鞚 氚滍憸頄堨姷雼堧嫟. 鞚 須岇偓電 TCW 鞛愳偘 甏毽 須岇偓鞕 Wingspire Capital 鞝滍湸靷皜 靻岇湢頃橂姅 靸堧鞖 氩曥澑鞐 瓯办潣 氇摖 鞛愳偘鞚 毵り皝頃橂姅 甑“ 臁办爼 歆鞗 瓿勳暯鞚 觳搓舶頄堨姷雼堧嫟.
須岇偓鞚 雼措炒 雽於滌瀽電 斓滉芳 2150毵 雼煬鞚 鞛愱笀鞚 氤挫檮頃橂姅 於旉皜 2750毵 雼煬鞚 鞖挫榿 鞛愲掣鞚 鞎届啀頄堨姷雼堧嫟. TCW 鞛呾鞍鞐 霐半澕 鞝 瓴届榿歆 Prasad Gundumogula電 靸堧鞖 氩曥澑鞐愳劀 75%鞚 歆攵勱臣 CEO 歆侅渼毳 鞙犾頃╇媹雼. 毂曧劙 11 鞝堨皑電 2025雲 2攵勱赴 齑堨棎 膦呺霅 瓴冹溂搿 鞓堨儊霅橂┌, 敫岆澕歆, 氅曥嫓旖, 鞚鸽弰 氚 旌愲倶雼れ棎靹 Mondee鞚 鞖挫榿鞐愲姅 鞓來枼鞚 氙胳箻歆 鞎婌潉 瓴冹瀰雼堧嫟.
須岇偓電 氩曥洂 臧愲弲 瓿检爼 鞝勲皹鞐 瓯胳硱 鞝曥儊 鞖挫榿鞚 瓿勳啀頃橂┌ 瓿犼皾 氚 韺岉姼雱 歆鞗愳潉 欷戨嫧 鞐嗢澊 鞙犾頃╇媹雼. 鞗愴櫆頃 鞝勴櫂鞚 氤挫灔頃橁碃 歆侅洂鞚 旮夓棳 氚 氤惦Μ頉勳儩鞚 韽暔頃橃棳 鞝曥儊 鞖挫榿鞚 鞙犾頃橁赴 鞙勴暣 觳偁鞚 氇厴鞚 鞝滌稖霅橁碃 鞛堨姷雼堧嫟.
Mondee Holdings (OTC: MOND), une entreprise de march茅 de voyages et de technologie IA, a annonc茅 un plan de restructuration strat茅gique incluant des proc茅dures volontaires de Chapter 11. L'entreprise a conclu un accord de soutien 脿 la restructuration qui pr茅voit la vente de presque tous les actifs 脿 une nouvelle entit茅 d茅tenue par TCW Asset Management Company et des affili茅s de Wingspire Capital.
Les cr茅anciers garantis de l'entreprise ont engag茅 27,5 millions de dollars suppl茅mentaires en capital op茅rationnel, compl茅tant leur r茅cent 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 entit茅. Le processus de Chapter 11, qui devrait se terminer au d茅but du deuxi猫me trimestre 2025, n'affectera pas les op茅rations de Mondee au Br茅sil, au Mexique, en Inde et au Canada.
L'entreprise poursuivra ses op茅rations normales tout au long du processus supervis茅 par le tribunal, maintenant le soutien aux clients et partenaires sans interruption. Des motions de premi猫re journ茅e sont d茅pos茅es pour assurer une transition fluide et maintenir les op茅rations normales, y compris les salaires et les avantages des employ茅s.
Mondee Holdings (OTC: MOND), ein Reisemarkt und KI-Technologieunternehmen, hat einen strategischen Restrukturierungsplan angek眉ndigt, der freiwillige Chapter-11-Verfahren umfasst. Das Unternehmen hat eine Restrukturierungsunterst眉tzungsvereinbarung unterzeichnet, die den Verkauf nahezu aller Verm枚genswerte an eine neue Einheit vorsieht, die im Besitz von TCW Asset Management Company und Wingspire Capital Affiliates ist.
Die gesicherten Gl盲ubiger des Unternehmens haben zus盲tzliche 27,5 Millionen Dollar an Betriebskapital zugesagt, was ihre k眉rzliche Finanzierung von 21,5 Millionen Dollar erg盲nzt. Im Angebot von TCW wird der fr眉here Gesch盲ftsf眉hrer 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 Betriebsabl盲ufe von Mondee in Brasilien, Mexiko, Indien und Kanada nicht beeintr盲chtigen.
Das Unternehmen wird w盲hrend des gesamten gerichts眉berwachten Verfahrens den normalen Betrieb aufrechterhalten und die Unterst眉tzung von Kunden und Partnern ohne Unterbrechung gew盲hrleisten. Erstantr盲ge werden eingereicht, um einen reibungslosen 脺bergang sicherzustellen und den normalen Betrieb aufrechtzuerhalten, einschlie脽lich der Geh盲lter 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) (鈥Mondee鈥 or the 鈥Company鈥), 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鈥檚 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 鈥淭CW Bid鈥). 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鈥檚 existing secured lenders will continue to support the Company throughout its Chapter 11 proceeding by committing to an additional
鈥淭oday鈥檚 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,鈥 said Jesus Portillo, newly appointed Chief Executive Officer. 鈥淲ith 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.鈥
Mondee is in the process of filing 鈥渇irst day鈥 motions with the Court. The relief requested will ensure a smooth transition into Chapter 11 and the ability to maintain normal operations, including Mondee鈥檚 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 . Parties with questions can contact the Company鈥檚 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 .
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鈥檚 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鈥檚 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: .
Forward-Looking Statements:
This press release contains 鈥渇orward-looking statements鈥 within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by words such as: 鈥渂elieve,鈥 鈥渃ould,鈥 鈥渕ay,鈥 鈥渆stimates鈥, 鈥渁nticipates鈥, 鈥渕ight鈥, 鈥渟hould鈥, 鈥渆xpect,鈥 鈥渋ntend,鈥 鈥減otential,鈥 鈥減lan,鈥 鈥渟eeking to鈥, 鈥渨ill鈥, 鈥渁pproximately鈥 or, in each case, their negative or other variations thereon or comparable terminology, although not all forward-looking statements contain these words.听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.听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鈥檚 forward-looking statements in this press release, but are not limited to, the Company鈥檚 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鈥檚 plans to sell its assets pursuant to chapter 11 of the Bankruptcy Code; the Company鈥檚 intention to continue operations during the Chapter 11 Cases; the Company鈥檚 belief that the 363 sale process will be in the best interest of the Company and its stakeholders; and other statements regarding the Company鈥檚 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鈥檚 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鈥檚 liquidity and results of operations;听unpredictability of trading markets and whether a market will be established for the Company鈥檚 common stock;听changes in the Company鈥檚 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鈥檚 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鈥檚 assets or other conditions to the potential asset sale; and the timing or amount of any distributions, if any, to the Company鈥檚 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.
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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?
Will Mondee's (MOND) customer services continue during bankruptcy proceedings?
