Fairmont San Jose’s Plan to Rebrand as Signia by Hilton Approved

The bankrupt owner of the Fairmont San Jose won court approval to reorganize through a plan that rebrands the luxury hotel under Hilton’s Signia division.

Under the plan, approved Wednesday, Hilton is making a $15 million payment to hotel owner SC SJ Holdings LLC and is guaranteeing up to $25 million in additional financing from JPMorgan Chase Bank NA to reopen and run the 805-room hotel, which has been closed since March.

Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved the plan during a virtual hearing.

SC SJ Holdings reached a deal ...