Gigi and Bella Hadid’s dad Mohamed’s company is bankrupt, court papers say



Property tycoon Mohamed Hadid and father of superstar models Gigi and Bella Hadid has declared bankruptcy in the United States after a drawn-out battle over the construction of his mansion which was ordered to be torn down.

The notorious developer has been told he has to pay the $A7.4 million to have his partially constructed colossus in Los Angeles demolished because it poses safety concerns.

But Mr Hadid’s Chapter 11 bankruptcy motion for his company 901 Strada LLC means the bill may be absorbed by California’s taxpayers.

The 71-year-old developer’s lawyer, Bruce Rudman, submitted the voluntary filing on Wednesday on behalf of 901 Strada LLC, according to the papers. The Daily Mail was the first to report the news.

The LLC is attached to Hadid’s 2787sq m Los Angeles semi-built home, which an LA Superior Court judge recently deemed dangerous and ordered it to be torn down, according to the report.

Mohamed Hadid was not mentioned in the bankruptcy papers, other than providing his name, signature and title as “managing member”.

Court documents classified 901 Strada, and in turn, the massive property, as being worth between $A14.8 million and $A73.8 million.

But Mr Rudman told the judge earlier in the month that Mohamed Hadid could “not afford” the estimated $A7.4 million it would cost for the mansion to be torn down, nor could he afford the $A738,000 cost of having a judge-appointed person supervise the deconstruction, the outlet reported.

“It’s unsafe and it’s dangerous … If this house came down the hill it would take a portion of the neighbourhood with it,” Judge Craig Karlan told the court at the time. “This seems to me to be a clear-cut case where the property must come down.

“We’re not talking about an extra wall or a different way into he kitchen. We’re talking about the most significant aspect of the structure — the foundation,” the judge said.

Hadid’s lawyer, Larry Rothstein, told the judge that even though the house doesn’t comply with building codes, it’s still safe and the piles could be retrofitted — but Karlan rejected that argument.

The father of supermodels Gigi and Bella Hadid has personally guaranteed a $25.1 million loan on the unsafe property but the site is now believed to be worth just $A11.8 million.

Mr Hadid’s lawyer claimed the property developer was broke, which was rejected by the legal representation for the neighbours, Ariel Neuman.

“It’s amazing to me because he (Hadid) just bought a multimillion-dollar home in Beverly Hills,” the lawyer said.

“We don’t accept this explanation. We don’t accept Mr Hadid’s word for anything.”

901 Strada got a $A25.1 million loan for the property, which Mohamed Hadid also guaranteed, the Daily Mail reported.

Mr Rudman would not comment on the bankruptcy when reached by Fox Business. It was not immediately clear what the filing meant in terms of the $A8.1 million Mohamed Hadid was ordered to pay.

The construction of the property has received intense criticism and even law enforcement attention over allegations that the home — or at least parts of it — was illegitimately built, the outlet reported.

Mr Hadid previously pleaded no contest to charges in connection to the alleged illegal construction. He is now serving three years of probation.

WHO IS MOHAMED HADID?

Originally from Palestine, Mr Hadid married his model wife Yolanda in 1994 and raised their three children on a farm in Santa Barbara.

He became known as a real estate tycoon, developing mansions and Titz Carlton hotels across the globe. Mr Hadid was recently estimated to have a new worth of about $A590 million.

The Hadids are most famous in contemporary pop culture for their daughters Gigi and Bella as well as son Anwar.

— with Fox News




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