Mohamed Hadid bankruptcy, company filed Chapter 11 bankruptcy.
Real estate tycoon Mohamed Hadid, the father of models Gigi and Bella Hadid, has declared Chapter 11 bankruptcy in California on behalf of his company, court papers show.
The 71-year-old developer’s attorney, Bruce Rudman, submitted the voluntary filing 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 30,000-square-foot Los Angeles semi-built home, which an L.A. Superior Court judge recently deemed dangerous and ordered 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 $10 million and $50 million.
But Rudman told the judge earlier in the month that Mohamed Hadid could “not afford” the estimated $5 million it would cost for the mansion to be torn down, nor could he afford the $500,000 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 neighborhood 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.”
And 901 Strada got a $17 million loan for the property, which Mohamed Hadid also guaranteed, the Daily Mail reported.
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 $5.5 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. Mohamed Hadid previously pleaded no contest to charges in connection to the alleged illegal construction. He is now serving three years of probation.
Mohamed Hadid has four daughters – Marielle, Alana, Gigi and Bella – and a son, Anwar.