“GIVE BACK, LLC” Vows to donate hadid’s Land to the public
Recent documents filed in the Hadid Bankruptcy reveal that Hadid owned entities borrowed approximately $25 million dollars from a company called “Romspen California Mortgage” in 2017 and Hadid secured that loan with the properties owned in Franklin Canyon Park. Not long after securing the loans, Hadid defaulted. While Hadid was in default, a mysterious California company named “Give Back LLC” approached Romspen to buy Hadid’s notes. In August/September 2020, Give Back became Hadid’s his new lender. (As of yet, we don’t know how much money Give Back paid to Romspen for Hadid’s notes but we suspect it was likely at a discount. ) Bad news for Hadid.
As of September 2020, Hadid owed Give Back over $27 million (including penalties and interest, etc) and Give Back was not as accommodating to Hadid as Romspen was. As soon as it could do so, Give Back proceeded to foreclose on Hadid with the object of acquiring all of Hadid’s Franklin Canyon properties. In attempt to stop the foreclosure, Hadid filed for Bankruptcy.
As of March 20, 2021, documents filed in the Bankruptcy court indicate Hadid owed Give Back in excess of $30 million dollars. The parties are now fighting over whether the Bankruptcy can be maintained and Give Back has recently moved for “relief from stay” so that it can proceed with foreclose on the properties and take possession of them. (More bad news for Hadid: Give Back also purchased personal guarantees that Hadid signed making Hadid (and his personal assets) exposed to Give Back. This part of the story has yet to unfold. For now, Give Back has sued Hadid personally on the guarantees that that case is proceeding in Los Angeles Superior Court. Watch this space.)
Who is Give Back and what is its intention? If there any doubt as to Give Back’s intentions for Hadid’s properties (if taken from Hadid by foreclosure), those doubts were resolved recently. In Give Back’s most recent court filing with the Bankruptcy case, Give Back’s attorney Ron Richards stated:
“[I]n the event Give Back is permitted to foreclose and acquire the Properties, it has no intention of constructing any houses or otherwise developing the Properties in such a calamitous manner. Instead, Give Back intends to donate the Properties to be used in perpetuity by the public for nature walks, hiking trails, and other similar public uses. Give Back truly is doing a good deed by attempting to and save these hillsides from a reckless developer whose track record is one disastrous project after another. There has to be a moral compass somewhere, and Hadid cannot use the Bankruptcy Code to destroy this precious remaining green space in the hillsides of Franklin Canyon.”
Give Back’s statement is obviously great news for Franklin Canyon and the public. Whoever is behind “Give Back” and its astonishing generous philanthropy (we have some theories. . .), we all owe them a serious debt a gratitude. HAH