The lender of a $32 million construction loan for the building of the Cedars condominium project in downtown Hendersonville has filed a lawsuit seeking the appointment of a receiver to take control of the property, declaring in the suit that the loan was in default as of Dec. 31 and asserting that the developer is insolvent or “in imminent danger of insolvency.”
The court action by Fuse 10 LLC comes as the site of the grandly planned development sits idle. The general contractor, pulled off the job in March and has sued the Cedars Lodge & Spa for $7 million in unpaid invoices for work and materials. Fuse 10 is part of Fort Lauderdale-based Fuse Group Investment Companies, a bridge and construction lender.
The property was purchased in the mid-fifties by the late Cliff Shipman and became a Cedars event venue along with Clifton's Cafeteria - a most popular eating place over the years.
Some of the Shipman family continues ownership of the property - at the corner of 7th Avenue West and Church Street - in this planned development.
