Mondee, a prominent travel marketplace and artificial intelligence company, has filed for Chapter 11 bankruptcy protection. The Austin, Texas-based company also announced plans to sell the majority of its assets to a newly formed entity.
Founded in 2011, Mondee operates as the parent company of 18 travel service firms globally. It boasts a vast network, including 21 offices worldwide, 65,000 travel experts, over 500 airlines, one million hotels and vacation rentals, 30,000 car rental locations, and more than 50 cruise lines. Despite its extensive reach, the company has faced financial difficulties.
Court filings reveal that Mondee holds 363millioninassetsbutcarries359 million in debt, owed to more than 1,000 creditors. To support operations during the restructuring process, the company has secured $49 million in funding.
Mondee intends to sell its assets to a new company owned by affiliates of TCW Asset Management Company LLC and Wingspire Capital LLC. If the sale proceeds as planned, Prasad Gundumogula, Mondee’s co-founder, will retain a majority stake in the new entity and continue as CEO.
In a press release, Mondee stated it is filing “first-day motions” with the court to provide transparency about the challenges it has faced. The company emphasized its commitment to overcoming past issues and strengthening its position in the travel market.
Jesus Portillo, the newly appointed CEO, expressed optimism about the future. “With a sustainable capital structure and a structured sale process, we are well-positioned to advance our leadership in the travel industry. Our employees remain engaged, our culture is strong, and we are focused on delivering top-tier products and services,” he said.
The bankruptcy filing marks a significant step in Mondee’s efforts to restructure and stabilize its operations amid financial pressures.
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