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home News Real State Developer Mohamed Hadid Declares Chapter 11 Bankruptcy 

Real State Developer Mohamed Hadid Declares Chapter 11 Bankruptcy 

Published Fri Nov 29 2019 By jeena
Real State Developer Mohamed Hadid Declares Chapter 11 Bankruptcy 

Super Models Gigi And Bella Hadid's Father Mohamed Hadid Files For Bankruptcy On Behalf Of his Company  

  1. Real State tycoon Mohamed Hadid, 71, has declared Chapter 11 bankruptcy on behalf of his company 901 Strada LLC.
  2. He submitted the papers in Los Angeles on 27th November 2019, where he opened up the possibility of not having to pay for the demolition of his mansion. 
  3. Hadid's attorney Bruce Rudman told the judge earlier the month that Mohamed could not afford $5 million, which was the estimated cash to tear down his 30,000-square-foot Los Angeles semi-built home. 
  4. Father of five Hadid claimed that his company is $386,000 in debt to a design and management company, $200,000 to a building materials company, $35,000 to plumbers, and $93,000 to a demolition company.

Jordanian-American real estate developer Mohamed Hadid has filed for chapter 11 bankruptcy just a week after a judge declared that his new mega-mansion is dangerous as it failed to meet the needed rules of the state and must come down.

Mohamed Hadid, 71, has declared Chapter 11 bankruptcy on behalf of his company 901 Strada LLC and opened up the possibility of not having to pay for the demolition of his mansion which he started building in 2011

Image Source: Page Six

As per Daily Mail, his company, 901 Strada LLC, filed for insolvency in federal bankruptcy court on Wednesday, a day before Thanksgiving. The 71-year-old investor declared that the company is $10-50 million in debt because of the ongoing construction of his 30,000 square-foot Bel-Air mansion.

The project was reportedly started in 2011 but sadly ended when Hadid's advocate Bruce Rudman, officially declared that is client was broke in Los Angeles Superior Court.

In the bankruptcy filing, the developer said that the company is $386,000 in debt to a design and management company. Similarly, he owes $200,000 to a building materials company, $93,000 to a demolition company, and $35,000 to plumbers.

Hadid's semi-built 30,000 square-foot Bel-Air mansion located at Los Angeles

Image Source: Daily Mail

As per TMZ, Hadid, who made cameos on Bravo’s Real Housewives of Beverly Hills, also mentioned that his mega-mansion needs immediate attention to be protected from the weather. TMZ also claimed that if Hadid fails to pay an estimated $5 million to demolish the building, then the local taxpayers would have to pay the properties' expenses.

The mansion got the attention when Hadid's neighbors filed a lawsuit in 2018 against the construction of his Bel-Air palace claiming "the most illegal structure ever constructed.” The case is set to go to trial in March 2020.

During the trial, Judge Craig Karlan said:

“If this house came down the hill, it would take a portion of the neighborhood with it".

Former husband of Yolanda Hadid, rejected the allegations of his home being unsafe, "The house has not moved a millimeter! It has never been an imminent danger to the neighbors.”

Hadid with his five children; (Right to Left) Marielle Hadid, 39, Gigi Hadid, 24, Bella Hadid, 23, Anwar Hadid, 20, Alana Hadid, 34

Image Source: Emirates Woman

Father of Models, Gigi, Bella Hadid has reportedly filed another court document asking the Judge to temporarily halt the lawsuit with his neighbors pending the outcome of his bankruptcy filing. His neighbors, however, are determined to take the building down as soon as possible.

“[The neighbors] are in constant fear of the hillside collapsing. Their home values are crippled, and their privacy and serenity are invaded by the illegal and unsightly structure looming above them.”

According to the Los Angeles Times, back in 2015, the city filed misdemeanor charges against Hadid for risking the safety of the town and failing to obtain proper construction permits. Though he pleaded no contest to the charges, in 2017, the court ordered to complete community service and pay fines.