Artificial intelligence-supported travel agency application maker Mondee Holdings Inc. filed for Chapter 11 protection in Delaware on Tuesday, revealing $358 million in debt and plans for a sale of its assets. The company has secured $49 million in financing from its existing lenders to support the bankruptcy process.

Mondee, which offers AI-backed services for travel agents and consumers, intends to use the bankruptcy process to test an acquisition offer submitted by TCW Asset Management Co. LLC and Wingspire Capital LLC. The company aims to complete the sale and emerge from bankruptcy by the second quarter of 2025.

Mondee’s newly-appointed CEO, Jesus Portillo, emphasized the company’s commitment to overcoming past challenges and positioning itself for future growth in the travel market. He expressed confidence in Mondee’s organizational culture and its ability to continue delivering high-quality products and services.

The company has secured $27.5 million in bankruptcy financing from existing secured lenders, in addition to $21.5 million in pre-bankruptcy financing.

Founded in 2011 and based in Austin, Texas, Mondee operates in the U.S., Canada, Brazil, Mexico, India, and Greece, providing AI-powered tools for travel agents and tourists.

Mondee is represented by bankruptcy counsel from Young Conaway Stargatt & Taylor LLP and Fried Frank Harris Shriver & Jacobson LLP, with restructuring advisors from M3 Advisory Partners and investment bankers from Piper Sandler & Co.

The lead case is In re: Mondee Holdings Inc., case number 1:25-bk-10047, in the U.S. Bankruptcy Court for the District of Delaware.