San Jose Fairmont owner gets final approval of $9 million DIP loan

By Sarah Lizee

Olympia, Wash., April 8 – FMT SJ LLC and SC SJ Holdings LLC, which own the San Jose Fairmont Hotel in California, received final court approval of a $9 million debtor-in-possession superpriority non-amortizing credit facility, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The lender is FMT SJ Catering LLC, and the borrower is SC SJ Holdings, as previously reported.

Loans bear interest at 3% per annum.

Proceeds will be used to pay post-petition expenses and other working capital and financing requirements of the borrowers.

The company also received court approval to use the cash collateral of its pre-petition secured lender, CLNC 2019-FL1 Funding, LLC.

FMT SJ, a San Jose, Calif.-based hotel owner, filed bankruptcy on March 5 under Chapter 11 case number 21-10521.

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