hadid files for bankruptcy

On January 15, 2021, two of the Hadid shell entities that own land inside Franklin Canyon Park (i.e., Coldwater Development, LLC and Lyda Ludd, LLC) filed for Bankruptcy protection. These are the entities that own a substantial portion of the Hastain Trail and importantly, also own the parcel at the plateau of the trail which is the site of the massive 75,000 square foot house planned for 9650 Royalton.

Based on the schedules and disclosures filed with the Bankruptcy Court, the Hadid entities apparently have not paid numerous contractors, engineers, designers, architects, lawyers, the DWP and even the City of Los Angeles Tax Collector, among others.

Our intel also shows that Hadid personally borrowed approximately $27 million in 2017 and has apparently not performed on the loan. We understand the lenders of that money have moved to foreclose. On top of that, Hadid personally owes over $3M in federal income tax and another $300k to the State of California. (We currently don't know the status of these tax liens. They may have been paid but we suspect not).

We were curious as to why work at the Cedarbrook site mysteriously stopped in November 2020. Now we suspect that cash flow and financing may be the explanation. Stay tuned for more details as they come in. In the mean time, check the “Resources” page here for copies of some of the filings in Bankruptcy Court.