Mondee Plans Asset Sale, Restructuring After Nasdaq Delisting

Mondee Holdings, a travel marketplace, is planning to sell its assets to improve its financial standing following its recent Nasdaq delisting. The company will transfer its assets to a newly formed entity, owned by affiliates of TCW Asset Management Company and Wingspire Capital.

If the sale proceeds as planned, Mondee founder Prasad Gundumogula will hold a 75% stake in the new entity and take on the CEO role. The company has also filed for Chapter 11 bankruptcy protection to facilitate the transaction, with the potential for a higher bidder to step in.

Mondee opted not to appeal its delisting after receiving a Nasdaq non-compliance notice for failing to file its third-quarter earnings in November. Gundumogula subsequently took a leave of absence, with CFO Jesus Portillo stepping in as interim CEO.

The company has secured $27.5 million in additional operating capital from its lenders, who had previously provided $21.5 million. This financial support is expected to sustain operations throughout the Chapter 11 process.

“With a sustainable capital structure and a structured sales process, we will be well-equipped to enhance our leadership in the travel market,” said Portillo.

Mondee, which went public via a SPAC merger in 2022, expects to emerge from bankruptcy by the second quarter of 2025. Its operations in Mexico, Brazil, Canada, and India remain unaffected by the proceedings.

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Mondee Plans Asset Sale, Restructuring After Nasdaq Delisting

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