Information for Creditors of Treetop Development, LLC
Case Number 22-14165 in the United States Bankruptcy Court for the Central District of California
THE DEBTOR WAS TRYING TO BUILD ANOTHER MEGA-MANSION
Marketed as even better than “The One” mansion, the complex that is planned for 9650 Cedarbrook Drive, Beverly Hills, CA 90210, boasts a private road, three-level 26,000 square foot guest house, and four-level 52,000 square foot main house on 38 acres, including a private vineyard. The planned complex is the largest property ever permitted in the City of Los Angeles, but is currently in the very early stages of build. The property is being marketed as for sale for $92 million once the foundations are in place or $250 million if purchased after construction has been completed.
The developer of the property is Mohamed Hadid, a prominent real estate developer and investor and the father of models Bella Hadid and Gigi Hadid. The property is being offered for sale by Hilton & Hyland, a luxury real estate brokerage. To see models and mock-ups of what the incredible property will look like when it is completed, check out their website by clicking here.
THREATENED FORECLOSURE CAUSED THE DEBTOR TO FILE FOR BANKRUPTCY
The bankruptcy case was filed on an emergency basis, so not much information is available yet. Bankruptcy laws require debtors like Treetop to provide detailed financial information relating to their assets and liabilities, but they have some time after filing to get this information together. As a result, we do not yet know in detail how much the Debtor has in assets or how much it owes in liabilities.
The Debtor did disclose the reason for the bankruptcy filing, though. In its first filing, the Debtor stated that it had “been notified that a purportedly secured creditor shall attempt to foreclose on all the assets of Treetop on August 2, 2022.” So, it seems that a lender of the Debtor has potentially not been paid and was trying to seize the Debtor’s assets, including the 38 acres at 9650 Cedarbrook Drive. The creditor who had not been paid would likely have sold the property at a substantial discount in order to recover what it was owed.
WHAT WILL HAPPEN TO UNSECURED CREDITORS AND SUBCONTRACTORS?
At PRLT, we have seen multiple cases like the Treetop Development bankruptcy recently, including the Crestlloyd or “The One” mansion bankruptcy. We have also unfortunately seen an uptick in bankruptcy filings by contractors and subcontractors themselves. The COVID-19 pandemic, supply chain issues, and skyrocketing prices of building materials have besieged the residential and commercial construction industries. Real estate prices, which have begun falling after historic demand, are now compounding the issues.
Unsecured creditors, vendors, contractors, and subcontractors do not have to be left holding the bag. The bankruptcy laws and rules allow unsecured creditors to have a voice in bankruptcy proceedings. For example, creditors may work together in a committee of unsecured creditors. If you have any questions about the bankruptcy process, unsecured creditors’ committees, or the Treetop Development bankruptcy specifically, please feel free to contact PRLT.
PRLT does not represent Treetop Development, LLC or any of its affiliates. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Treetop Development bankruptcy case or anything discussed on this page, please contact us.