Mohamed Hadid said that fighting City Hall and a judge’s order to tear down his 30,000-square-foot Bel Air spec mansion is his only financially feasible option, as the entity that owns the mansion is in debt for $28 million.
901 Strada LLC, the Hadid-managed company behind the 901 Strada Vecchia Rd. project, filed for Chapter 11 bankruptcy on Nov. 28 in California federal court.
The move for bankruptcy protection came one week after Los Angeles County Superior Court Judge Craig Karlan sided with neighbors suing Hadid and ordered the mansion demolished to its foundational slab. Earlier last month, Los Angeles city attorney Mike Feuer filed a motion in a separate criminal proceeding against Hadid, which also called for the mansion’s destruction.
But in an interview with The Real Deal Monday, Hadid said he must persist with constructing the mansion because he owes creditors about $28 million on the property, which critics have dubbed “Starship Enterprise” for its saucer-shaped house. First Credit Bank, which specializes in bridge loans, is the primary debt holder. The bank, which had $454 million in assets as of Sept. 30, is owed around $17 million, according to Hadid. The only way to pay that money back, he said, is to see the project through, and eventually sell the mansion to cover his costs.
“You always can borrow the money to build,” Hadid…