Metronomic, Fuse get court approval to sell 19 parcels of property

By Sarah Lizee

Olympia, Wash., Jan. 19 – Metronomic Holdings, LLC and secured creditor Fuse Funding Fund I, LLC secured court approval to sell 19 parcels of property owned by non-debtor related entities and Fuse, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Florida.

The properties consist of 10 vacant lots and nine lots with vertical construction of multi-family units, according to the motion.

On March 28, 2020, Fuse and Metronomic entered into the settlement agreement and mutual release, which involved an action by Fuse to collect upon a mortgage loan receivable in the principal amount of $17.65 million by foreclosing on its first-priority mortgage on the 19 parcels.

On June 15, 2020, following Metronomic’s inability to make the first paydown amount by the settlement deadline, an escrow agent delivered to Fuse the deeds in lieu of foreclosure out of escrow relating to some of the properties. Fuse now has a first-priority mortgage lien encumbering all of the related properties that secures the debt owed to Fuse by Metronomic for the defaulted loan.

“The debtor believes that, over and above the amount owed to Fuse for the loan debt, that there is equity in the Fuse portfolio properties that, after the loan debt owed to Fuse is paid in full, could be used by the debtor to satisfy debts owed to unsecured creditors and to equity security holders, if applicable,” the motion said.

Metronomic is hoping to close the sale by March 15.

“The urgency is necessity to promptly sell or dispose of 19 parcels of real property owned by certain non-debtor related entities and Fuse on an ad hoc basis – single lots, pools or entire portfolio,” Metronomic said.

“The swift sale will reduce exposure to liability, additional costs, and maximize recovery for unsecured creditors.”

Under the bidding procedures, the bid deadline is 5 p.m. ET on March 1 and the auction will be held on March 8, if needed.

The minimum incremental overbid has been set at 10%, with 5% increments thereafter.

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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