As alleged in the court records, in October 2022, Cedars Lodge & Spa, L.L.C. obtained a $32 million construction loan in order to proceed with construction. After extensions, the loan matured in December 2025. However, Cedars Lodge & Spa, L.L.C. failed to repay the loan to the lender by the maturity date. In early 2026, construction at the project stopped and the general contractor demobilized and stopped work due to non-payment. The general contractor for the project sued Cedars Lodge & Spa, L.L.C. for breach of contract for almost $7 million and has asked for foreclosure to satisfy its claim of lien. The building which Cedars Lodge & Spa, L.L.C. was constructing on the Real Property is currently only partially constructed and has been sitting for months with no construction activity.

Per a March 17, 2026 article from the Hendersonville Lightning, "the Hendersonville City Manager John Connet said city officials learned last week that the developer of the Cedars Lodge & Spa, L.L.C., Gregg Covin, was seeking new financing and demobilizing the project's general contractor, Turner Construction Co." The same news article reported that "The construction site has appeared to be mostly abandoned for months." A March 20, 2026 news story reported that the "stalled luxury condominium projects downtown called Fairmont Heritage Place The Cedars has become an eyesore for the community, as questions grow about whether construction will ever start back. The multi-million dollar, multi-story project sits partially built with exposed steel beams and concrete." The news story also reported that "66 units have been sold."

The lender filed a lawsuit against Cedars Lodge & Spa, L.L.C. in May 2026 since the construction loan had been in default since the December 2025 loan maturity. A court has now appointed The Liberty Solution, LLC as receiver and directed turnover of the project’s assets and records to the receiver.