Metronomic secured creditor Fuse seeks dismissal of Chapter 11 case

By Sarah Lizee

Olympia, Wash., Oct. 14 – Metronomic Holdings, LLC secured creditor Fuse Funding Fund I, LLC asked the U.S. Bankruptcy Court for the Southern District of Florida to dismiss the Chapter 11 case, according to a motion filed Tuesday.

“This bankruptcy case is a classic bad faith Chapter 11 filing and should be dismissed,” said Fuse, which said it is the debtor’s largest secured creditor and is owed over $22 million.

“The debtor agreed with Fuse in a prepetition post-Covid-19 settlement agreement that it would not file a bankruptcy petition and stipulated that if it did so, its petition would be filed in bad faith and should be dismissed as a bad faith filing.”

Fuse claims that Metronomic filed its petition on the evening of the last day the company had to pay Fuse $13.36 million under the post-foreclosure post-Covid-19 settlement agreement. Under the settlement agreement, if the company did not pay, the escrow agent at Holland & Knight would deliver the 17 remaining deeds in lieu of foreclosure to Fuse, thereby vesting Fuse with fee simple title to the vast majority of the debtor’s real property assets.

“The purpose of the filing was to prevent this from occurring,” Fuse said.

Fuse said that if the bankruptcy case moves forward, it will seek stay relief to demand delivery to Fuse by the escrow agent of the 17 deeds in lieu of foreclosure.

The debtor had agreed in the settlement that if a bankruptcy petition were to be filed, that Fuse would be promptly entitled to stay relief, Fuse said.

“If the case is not dismissed and stay relief is not granted to Fuse, a trustee should be appointed due to the debtor’s track record of gross mismanagement and incompetency,” Fuse added.

Metronomic is a Coral Gables, Fla.-based sustainable real estate developer. The company filed Chapter 11 bankruptcy on Sept. 23 under case number 20-20310.

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