Mondee files for Chapter 11 in pursuit of long-term growth

BY Fraser Tennant

In a move designed to position the company for long-term growth, air ticket consolidator Mondee Holdings has filed for Chapter 11 bankruptcy in order to facilitate a series of transactions contemplated under a restructuring support agreement (RSA).  

The transactions include a term sheet to sell substantially all of the assets of Mondee to a newly formed entity owned by, among others, affiliates of TCW Asset Management Company LLC and Wingspire Capital LLC.

Should the TCW bid be the successful one, following the closing of the sale, Prasad Gundumogula, co-founder, chairman of the board and previously chief executive, will have a 75 percent equity stake in, and serve as chief executive of, the newly formed entity.

While Mondee pursues a sale of the company to the current bidder or another party with a higher or better offer, its existing secured lenders will continue to provide support throughout the Chapter 11 proceeding by committing to an additional $27.5m financing for operating capital, in addition to the $21.5m of financing recently made available.

Throughout the court-supervised process, Mondee will operate its business as usual and will continue to support its customers and partners without disruption. The Chapter 11 proceedings do not impact Mondee entities in Brazil, Mexico, India and Canada.

“Today’s announcement marks an important step forward for Mondee, our valued customers, partners and our dedicated team as we continue to transform our business for the future,” said Jesus Portillo, chief executive of Mondee. “With a sustainable capital structure and a structured sales process, we will be well-equipped to enhance our leadership in the travel market.”

Additionally, Mondee is in the process of filing first day motions with the bankruptcy court. The relief requested will ensure a smooth transition into Chapter 11 and the ability to maintain normal operations, including Mondee’s commitments to customers and partners and the payment of employee wages and benefits.

Established in 2011 and operating 21 offices globally, Mondee drives change in the leisure and corporate travel sectors through its broad array of innovative solutions. Available both as an app and through the web, the company’s platform processes over 50 million daily searches and generates a substantial transactional volume annually.

Mondee is looking to move expeditiously through the bankruptcy process and emerge from Chapter 11 in the beginning of the second quarter of 2025.

Mr Portillo concluded: “We have taken decisive action to overcome past challenges and are encouraged by employee engagement, organisational culture, and our ability to deliver best-in-class products and services.”

News: Mondee files for bankruptcy in the US

Ligado Network files for Chapter 11 bankruptcy protection

BY Richard Summerfield

US satellite communications company Ligado Networks has filed for Chapter 11 restructuring in the US state of Delaware.

According to the company’s filing, Ligado Networks has assets and liabilities of between $1bn and $10bn. Inmarsat Global Limited and Boeing Satellite Systems are listed as the two largest unsecured creditors, though the amounts they are owed have not been disclosed.

The filing will allow Ligado to continue operations as it implements a plan to repay creditors. Ligado has also signed a deal with AST SpaceMobile to allow the company to use Ligado’s mid-band spectrum.

As part of its restructuring support agreement, Ligado stated that a significant portion of its supporting creditors hold approximately 88 percent of its funded indebtedness. The supporting creditors have agreed to provide a fully backstopped financing commitment to provide $115m of additional incremental financing to fund the company during the restructuring process. Upon completion of Ligado’s Chapter 11 filing, the company’s debt will be reduced from $8.6bn to approximately $1.2bn. To that end, the restructuring will see the conversion of approximately $7.8bn of existing debt into new preferred equity and the preservation of the existing interests in the capital structure below the new preferred equity.

Ligado will continue to operate through the restructuring, providing mobile satellite services to its existing customers and advancing its mobile satellite plans to emerge from Chapter 11 on firm footing.

“This restructuring allows us to concentrate on our ongoing value-maximizing daily work and other key initiatives for the benefit of all of our stakeholders,” said Doug Smith, president and chief executive of Ligado.

The filing follows a year-long effort to secure a comprehensive resolution with satellite communications company Viasat to restructure Ligado’s significant payment obligations to Inmarsat, which Viasat acquired in 2023.

According to a statement from Ligado, the company’s filing was precipitated by large operational losses Ligado suffered due to what it considers the US government’s unlawful taking without just compensation of Ligado’s licensed spectrum. In response, Ligado Networks filed a lawsuit against the US government in October 2023, alleging it took some of its Federal Communications Commission-licensed spectrum for use by the Department of Defence without compensation, which the company alleges prevents it from launching its own 5G operations. In November 2024, a federal judge ruled Ligado Networks could continue its lawsuit after the US government sought to dismiss it.

“Ligado will continue to vigorously prosecute its litigation against the US government to enforce its constitutional right to just compensation for the government’s unlawful taking of Ligado’s licensed L-Band spectrum,” said Mr Smith. “The DOD’s actions constitute the largest uncompensated taking of private property in the US in modern times and have caused Ligado catastrophic financial distress.”

News: Ligado Files for Chapter 11, Makes Deal with AST SpaceMobile for MSS Spectrum

Akoustis Technologies files for Chapter 11 protection

BY Fraser Tennant

In a move it hopes will allow it to emerge as a cleaner and more robust entity, radio frequency (RF) products manufacturer Akoustis Technologies (AKTS) has filed for Chapter 11 bankruptcy protection.  

The voluntary Chapter 11 filing follows Akoustis’ recent legal case with Qorvo, Inc., in which Akoustis was ordered to pay a total judgement of approximately $59m in damages, fees and interest related to allegations of trade secret misappropriation and patent infringement.

To support the sale process, Akoustis has entered into a stalking horse asset purchase agreement with Gordon Brothers Commercial & Industrial, LLC for certain assets of the company.

Prior to the commencement of the Chapter 11 cases, Akoustis engaged in discussions with interested parties about the company's future operations through a potential sale of its businesses and assets. The company intends to use the court-supervised sale process to seek the highest or best bid for its assets.

To ensure the continued operation of its business without interruption, Akoustis has filed customary ‘first day’ motions in its Chapter 11 cases. These motions, upon approval, will help facilitate the continued payment of employee wages and benefits, enable payments to critical vendors and other relief measures standard in these circumstances.

“In light of the final judgement, we have taken this strategic step to provide flexibility and allow us to continue operations while our sale process continues with momentum,” said Kamran Cheema, chief executive of Akoustis. “Our priority is to ensure a seamless process for our customers, partners and employees as we work to find partners who recognise the importance of our products, continued operations and the central role we play in the RF wireless industry.”

Founded in 2014 and headquartered in Charlotte, North Carolina, Akoustis is a bulk acoustic wave RF company that targets high-power, high-frequency and ultra-wideband solutions for Wi-Fi AP, 5G infrastructure and mobile, automotive, defence and other markets.

Mr Cheema concluded: “We intend to leverage the court-supervised sale process to reaffirm that the business being sold is free and clear of any Qorvo infringement following the court-ordered cleansing process, which we firmly believe is the case.”

News: Akoustis Technologies Files For Chapter 11 Bankruptcy

Trucking company Kal Freight files for Chapter 11

BY Fraser Tennant

In one of the sector’s biggest bankruptcies of 2024, trucking company Kal Freight has filed for Chapter 11 bankruptcy protection in order to wind down failing affiliates and restructure its primary business.

Bankruptcy court documents show that the company owes approximately $325m to creditors, including Daimler, TBK Bank and Bank of America.

High demand during the pandemic saw Kal Freight invest heavily in trucks and trailers, but once the crisis subsided, the company was overleveraged and unable to meet its financial obligations.

Kal Freight is one of a number of major trucking companies to have filed for bankruptcy protection in 2024. These include Miami-based Star Transportation, Illinois shipping company Mighty Move Transportation and Texas-based logistics company Sunset Logistics.

Kal Freight intends to fund the Chapter 11 process with debtor-in-possession financing, which will provide it with the necessary liquidity to maintain normal operations while it undertakes certain key operational restructuring initiatives to emerge as a stronger enterprise positioned for long-term success.

Kal Freight has appointed Bradley D. Sharp, president and chief executive of Development Specialists, Inc., to serve as chief restructuring officer during the Chapter 11 process.

Kal Freight plans to “reorganise around their core trucking business and to wind down their non-core parts and tires businesses and liquidate certain real estate assets”, said Mr Sharp in the court filing. “The company intends to continue paying its employees in full in the ordinary course, as well as paying its vendors and suppliers in full under normal terms for goods and services provided on or after the date of filing.”

Established in 2014 and headquartered in Fontana, California, Kal Freight offers a complete range of integrated transportation and logistics services to diverse industries across the US. Its 800 drivers, 800 trucks and 2200 trailers operate across seven terminals in Fontana, Texas, New Jersey, Indiana, Tennessee, Georgia, Arizona and Arkansas.

Mr Sharp concluded: “Throughout the Chapter 11 process, Kal Freight aims to continue to serve its customers and trade partners and ensure the safety of its employees and fleet operations.”

News: California trucking company Kal Freight files for Chapter 11 restructuring

CareMax files for Chapter 11 bankruptcy and agrees asset sales

BY Richard Summerfield

CareMax Inc, which runs a system of medical centres catered toward elderly patients, has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Northern District of Texas.

Miami-based CareMax filed Chapter 11 on Sunday, listing assets of between $100m and $500m, and liabilities between $500m and $1bn. CareMax sought court protection after cost cuts and attempts to refinance its debt.

As per the filing, CareMax has filed customary motions with the court, seeking authorisation to maintain business-as-usual operations, including by continuing operations to ensure patients at its clinics continue to receive high quality, value-based healthcare, paying associated wages, including for its doctors and nurses, without interruption and paying the existing pre-petition claims of certain vendors that are critical to the health and safety of CareMax’s patients and critical to the operation of the company’s medical centres.

The company has also announced it has entered into an agreement to sell its management services organisation. According to a statement announcing the deal, CareMax has entered into an agreement with an affiliate of Revere Medical which will see the company acquire the Medicare Shared Savings Program portion of the CareMax’s management services organisation that supports care provided to approximately 80,000 Medicare beneficiaries. The sale of the business is anticipated to be consummated simultaneously with the consummation of CareMax’s prearranged Chapter 11 plan.

CareMax also announced that it has reached an agreement in principle on a ‘stalking horse’ agreement with a third-party buyer for its operating clinic business. The closing of this sale is also anticipated to be consummated simultaneously with the consummation of CareMax’s bankruptcy plan. CareMax intends to disclose the proposed terms of the stalking horse agreement and the potential purchaser when and if an agreement is finalised.

“After a careful review of the Company’s strategic alternatives, we have determined that the transactions announced today are our best opportunity to protect the long-term value of the CareMax assets and ensure our patients, providers, and health plans can continue to rely on the comprehensive, coordinated care we provide,” said Carlos de Solo, chief executive of CareMax. “We are deeply appreciative of the outstanding team members across CareMax, whose hard work and commitment to our partners is resolute.”

CareMax’s Chapter 11 filing is the latest in a series of Chapter 11 filings by other healthcare groups this year, including Massachusetts-based Steward Health Care. Steward filed for bankruptcy in May, seeking to sell its 31 hospitals and address $9bn of debt.

News: Medical services provider CareMax files for Chapter 11 restructuring