Gigi Hadid and Bella Hadid‘s father, real estate mogul Mohamed Hadid, recently filed for bankruptcy for his construction company, 901 Strada LLC. A new report is revealing how the models are handling the news about their father’s business.
After Mohamed was ordered to tear down his $100 million mansion in Bel Air, the feelings of The Real Housewives of Beverly Hills guest star’s children were shared, as were new details about his current home in Beverly Hills as his neighbors are making accusations of bankruptcy fraud against him.
“[They] know that the filing caused a lot of stress but are happy it’s settled,” a source revealed in the latest issue of Us Weekly.
According to the report, Gigi and Bella are feeling relieved after learning that their father, who split from fiancée Shiva Safai last year, has taken steps to put an end to the nightmare experience he’s been dealing with in regard to the $100 million Bel Air home he was building with his now-bankrupt LLC. If you recall, a judge ruled Mohamed must demolish the home after neighbors complained it wasn’t safe.
Aerial image of the construction of real estate developer Mohamed Hadid’s controversial mega mansion. Photo credit: MEGA
Meanwhile, the Daily Mail is reporting that Mohamed has downsized to a $4.5 million home that features four bedrooms — a much more modest home than the $56 million mansion he was living in previously.
According to the report, Mohamed’s quaint new residence sits on 0.6 acres. His former mansion, which boasted tall ceilings and Moroccan-themed decor, was situated on a 2.2-acre lot. That said, there are a number of luxurious features at Mohamed’s new place, including a manicured lawn, a large motor court, a library, a walk-in wine closet, and a newly-renovated master suite.
Although Mohamed recently denied that he was facing money issues, he is facing a number of legal issues after neighbors of his $100 million Bel Air home filed a lawsuit against him, claiming the property he built is dangerous and not up to code. However, after Mohamed filed for bankruptcy and said he was unable to pay the $5 million it will cost to have the home demolished, Judge Craig Karlan told his neighbors’ lawyers that he was unable to make any further rulings until Mohamed’s bankruptcy issue is handled.
In response to the judge, the neighbors’ attorneys revealed plans to file a request to have Mohamed’s bankruptcy filing dismissed.
Also during the hearing, Gary Lincenberg, who is one of the neighbors’ attorneys, said his clients feared Mohamed had “engaged in bankruptcy fraud” after witnessing “people removing valuables from the property.” But again, the judge revealed that because of Mohamed’s bankruptcy filing, he was unable to address the matter and told them to instead take the issue up with the bankruptcy judge assigned to Mohamed’s case.
Mohamed’s lawyer has denied all claims of wrongdoing.
Photos Credit: Bill Davila/startraksphoto.com, JOHN NACION/startraksphoto.com