In July 2022, when Mondee was listed on the Nasdaq, its capitalization exceeded €700 million [Reuters].
Mondee, a technology company that offers travel services using artificial intelligence, has filed for bankruptcy under Chapter 11 of the US bankruptcy code.
This was preceded in December by its delisting from the Nasdaq stock exchange, where it had been listed in July 2022, through the Greek and Cypriot interests of the special purpose acquisition company (SPAC) Ithax, with Orestis Fintiklis as chairman and CEO.
Through the intended filing under Chapter 11 of the bankruptcy code, as reported, Mondee seeks to sell its assets and secure financing of 48 million euros from existing creditors. The company, founded in 2011 by Indian Prasad Gundumogula, has a debt of €348 million, and is seeking to sell its assets to two schemes that provide portfolio management and banking services. Mondee aims to complete its restructuring in the second quarter of 2025. According to its bankruptcy petition, existing creditors are to provide financing of €26.7 million, with the company having received liquidity of €21 million before filing for bankruptcy.
Mondee’s streamlining provides for the establishment of a joint scheme (by the two interested buyers) that will acquire its assets for a total consideration of €185.5 million. Upon its listing on the Nasdaq, Mondee raised €230 million through an initial public offering and another €50 million through a private placement.
Ithax, as a “shell” or “blank check” company aiming to merge with another firm, had as its unique asset around €280 million, which it contributed during the merger with Mondee. However, this financing, as reported by the company’s restructuring manager, did not yield the expected results, making it necessary for the company to resort to bank loans. In July 2022, when Mondee was listed on the Nasdaq, its capitalization exceeded €700 million and its shares were trading at $10.5. Since the start of the pandemic, the company has made 19 acquisitions, a large number of which took place in 2023. It is estimated that from 2012 to 2015 it spent some €190 million on developing its own software.
In November, a scheduled analyst conference call for third-quarter results was abruptly canceled, with JMP Securities placing Mondee’s stock under review at the time because the company had neither published its Q3 results nor provided a reason for canceling the conference call.