Travel marketplace Mondee Holdings is planning to sell all its assets in a bid boost its balance sheet and plot its future.
The company is lining up to sell its assets to a newly formed entity owned by affiliates of TCW Asset Management Company and Wingspire Capital, a statement said.
If successful, Prasad Gundumogula will own 75% of the new entity and become CEO of the new company. The company has also begun Chapter 11 proceedings to enable the sale to TCW/Wingspire or potentially to a higher bidder.
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Mondee announced in late December that it did not plan to appeal a non-compliance notice from Nasdaq or a subsequent delisting. At the time Gundumogula said he was taking a leave of absence and CFO Jesus Portillo stepped up to take the CEO role.
The company, which went public via special purchase acquisition company in 2022, received the notice after failing to submit third quarter earnings earlier in November.
Existing secured lenders will continue to support the company through the Chapter 11 process and have committed an additional $27.5 million for operating capital, the statement said. The finance comes on top of $21.5 million of financing the lenders recently made available.
“With a sustainable capital structure and a structured sales process, we will be well-equipped to enhance our leadership in the travel market,” Portillo said. “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.”
The company said it hopes to emerge from Chapter 11 in the second quarter of 2025. It also said operations in Mexico, Brazil, Canada and India were not affected by the bankruptcy protection proceedings.