Investing.com Mondee is taking strategic steps to position the company for long-term growth
AUSTIN, Texas, Jan. 14, 2025 (GLOBE NEWSWIRE) — Mondee Holdings, Inc. (OTC: MOND) (Mondee or Company), a leading travel marketplace and artificial intelligence (AI) technology company, today announced that it has entered into a restructuring support agreement that outlines a series of transactions that will strengthen the Company’s balance sheet and position it for long-term success, including a mandate form to sell substantially all of the Company’s assets to a newly formed entity owned by, among others, subsidiaries of TCW Asset Management Company LLC and Wingspire Capital LLC (the TCW Offer). If TCW’s offer is successful, after the closing of the sale, Mr. Prasad Gundumogula will hold a 75% equity stake in the newly formed entity and serve as CEO.
In order to sell the Company to the current bidder or another party with a higher and/or better offer, the Company has voluntarily filed for Chapter 11. The Company’s existing secured lenders will continue to support the Company during the Chapter 11 proceedings by committing an additional $27.5 million financing for operating capital, in addition to the $21.5 million in financing they recently made available to the Company. During the court-supervised process, the Company will operate as usual and will continue to provide support to its clients and partners without interruption. Chapter 11 proceedings do not affect Mondea entities in Brazil, Mexico, India and Canada.
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 strengthen our leadership in the travel market. We have taken decisive steps 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 requested relief will ensure a smooth transition to Chapter 11 and the ability to maintain normal operations, including Mondee’s obligations to customers and partners and the payment of wages and employee benefits.
The company aims to expeditiously move through this process and emerge from Chapter 11 by 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 advisors, M3 Advisory Partners as restructuring advisor and Piper Sandler & Co. as an investment banker for restructuring. TCW is represented by Proskauer Rose LLP and Prasada Gundumogulu is represented by White & Case LLP.
Additional information
Additional information about the Chapter 11 proceeding is available at https://cases.ra.kroll.com/mondee. Parties with questions may contact the Company’s claims agent, Kroll Restructuring Administration LLC, by calling (888) 343-0753 (US and Canada toll-free) or +1 (646) 876-0157 (international) or by emailing MondeeInfo@ ra. kroll. com.
About Mondee Holdings, Inc. and branches
Founded in 2011, Mondee is a leading travel marketplace and artificial intelligence (AI) technology company headquartered in Austin, Texas. The company has 21 offices throughout the United States and Canada, Brazil, Mexico, India and Greece. Mondee drives change in the leisure and business travel sectors through a wide range of innovative solutions. Available both as an app and through the web, the company’s platform handles more than 50 million daily searches and generates significant transaction volume annually. Mondee Marketplace includes access to Abhi, one of the most powerful and fully integrated AI travel planning assistants on the market. Mondea’s network and marketplace includes approximately 65,000 travel professionals, 500+ airlines and more than one million hotels and vacation rentals, 30,000 rental car pickup locations, and 50+ cruise lines. The company also offers bundled solutions and ancillary offerings that serve its global distribution. For additional 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, estimate, anticipate, could, should, expect, intend, potential, plan, strive, will, approximately or, in any case, their negative or other variations thereof or comparable terminology, although all forward-looking statements do not contain these words. These forward-looking statements reflect management’s current beliefs and expectations pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that forward-looking statements are not guarantees of future performance and that our actual results 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 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 include, but are not limited to, the Company’s ability to successfully complete its restructuring and exit the Chapter 11 cases, including entering 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 in business during the Chapter 11 case; 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 regarding future developments and their potential effects. There can be no assurance that future developments affecting the Company will be as anticipated. These forward-looking statements involve numerous risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that could cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, risks associated with the potential negative impact of Cases on the Company’s liquidity and operating results; the unpredictability of the trading market 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 Events and to maintain contracts that are critical to its business; the outcome and timing of the case and any potential asset sale; the effect of the filing of lawsuits and any potential sale of assets on the Company’s relationships with suppliers, regulatory authorities, employees and other third parties; possible proceedings that third parties may initiate in connection with the items or the potential sale of the assets; uncertainty regarding obtaining court approval for the sale of the Company’s assets or other conditions for the potential sale of assets; and the timing or amount of any distribution, if any, to the Company’s stockholders.
Nothing in this press release should be considered a representation by any person that the forward-looking statements made herein will be achieved or that any of the intended results of such forward-looking statements will be achieved. In light of the significant uncertainties in these forward-looking statements, you should not rely on forward-looking statements as predictions of future events. Except as required by law, Mondee undertakes no obligation to publicly update any forward-looking statements for any reason.
For additional information, please contact:
Public relations
pr@mondee.com
Investor relations
ir@mondee.com
Source: Mondee Holdings, Inc.
