Fairmont San Jose Bankruptcy Plan on Ice Until New Manager Named

The bankrupt Fairmont San Jose must wait to send its reorganization plan to creditors for a vote, after a judge said the company’s disclosures lack information about who would take over management of the luxury hotel.

Identification of the new hotel managers is a “central issue” to the plan “for obvious reasons,” Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware said at a virtual hearing Monday.

The plan disclosures also need the basic terms of proposed post-bankruptcy financing, Robert J. Gayda of Seward & Kissel LLP, an attorney for the unsecured creditors committee, said ...