Tuesday, January 21, 2025 Mondee Holdings , a global travel technology company based in Austin, Texas, has filed for Chapter 11 bankruptcy, citing financial challenges exacerbated by the pandemic, increased competition, and liquidity issues. The filing, made in the U.S.
Bankruptcy Court for the District of Delaware, is part of a strategic move to restructure debt and sell its assets to maximize value. Mondee and 18 affiliated entities filed on January 14, listing $362.8 million in assets and $358.
6 million in liabilities , including over $230 million in prepetition term loan debt. The company’s largest unsecured creditors include Reed Smith LLP ($1.89 million), Akin Gump ($949,000), and Deloitte & Touche ($800,000).
The restructuring plan involves selling assets to a stalking-horse bidder, an entity owned by affiliates of its prepetition lenders TCW Asset Management Co. and Wingspire Capital , as well as the company’s co-founder and former CEO Prasad Gundumogula , who will assume a 75% equity stake and return as CEO. To sustain operations during the bankruptcy process, Mondee secured $49 million in debtor-in-possession financing, including $27.
5 million in new funding and $21.5 million in prepetition debt rollup. The company aims to complete the sale and emerge from Chapter 11 within 100 days.
Mondee, which operates a platform connecting over 65,000 travel agencies with global travel inventory—including airlines, hotels, car rentals, and cruises—faced significant hurd.
