SC SJ Holdings LLC

SC SJ Holdings is a mature Delaware chapter 11 case whose current docket posture is largely administrative: the case was reassigned in April 2026 from Judge John T. Dorsey to Judge Thomas M. Horan, with future filings directed to carry Judge Horan’s initials, under the judge reassignment orderDkt. 1350.

The debtor filed chapter 11 on March 10, 2021, after the COVID-19 collapse in conference and hotel demand impaired the San Jose Fairmont hotel’s operating base. The first-day declaration described an 805-room luxury hotel whose occupancy fell from roughly 60%-70% to about 7.7%, producing substantial 2020 losses and projected 2021 losses, while the estate carried about $175 million of senior secured debt owed to CLNC 2019-FL1 Funding, LLC and had been unable to source attractive rescue capital outside court through its JLL-led process, as detailed in the first-day declarationDkt. 11.

The restructuring strategy began as an operating and balance-sheet reset around the hotel asset: the debtors sought liquidity through a $7.5 million superpriority revolving facility, continued use of cash collateral, payment of limited employee obligations, rejection of the Fairmont hotel management agreement, and a path tied to a restructuring support agreement that contemplated loan-extension options and new mezzanine debt or equity capital, all framed in the first-day declarationDkt. 11. By August 2021, that path had moved into a formal reorganization proposal through the Third Amended Joint Chapter 11 Plan of ReorganizationDkt. 660, which classified seven creditor and interest classes.