The developer of mega-mansion “The One” filed for bankruptcy on Tuesday in a last-minute bid to stop a scheduled auction of the sprawling estate.
Nile Niami limited liability company Crestlloyd filed for Chapter 11 protection shortly after noon in U.S. bankruptcy court in Los Angeles.
Lawrence Perkins, newly appointed director of the development company, said the action was accompanied by an automatic suspension of the sale of the trustee, scheduled for Wednesday, and other collection activity against Crestlloyd, the owning entity. of the property.
“Our goal is to maximize the value of the home through a thoughtful selling process where we can bring in brokers and show the home to all the right people who need to see it,” said Perkins, of Sierra Constellation. Partners.
The 105,000 square foot Bel-Air property is America’s largest modern home and the most extravagant property to date in Niami, known as the King of LA’s mega-mansion.
The sale of the trustee was slated after Crestlloyd defaulted on $ 106 million by Hankey Capital, the mortgage arm of Los Angeles billionaire Don Hankey.
The auction has already been delayed twice, most recently on October 13 after another lender – Yogi Securities Holdings of Joseph Englanoff – alleged Hankey withdrew from a deal to have the house completed and sold by real estate brokers for $ 225 million.
Englanoff, a Los Angeles-area doctor and longtime investor in Niami developments, accused Hankey of trying to take over the mansion at a bargain price or take all of the proceeds if he was. sold.
Yogi loaned Crestlloyd $ 30.2 million in 2018 and still owes him $ 22 million, according to an earlier statement filed by Englanhoff in support of a temporary injunction to suspend the auction. Hankey loaned Crestlloyd $ 82.5 million in 2018 and $ 23.5 million in two additional loans. Englanloff says his debt should be paid before Hankey’s subsequent loans.
Superior Court Judge Mitchell Beckloff did not issue a temporary restraining order, but delayed the auction until October 27 to give the two sides time to come to an agreement.
Hankey told The Times he tried but couldn’t come to an agreement with Englanoff. Attorneys for Hankey Capital said the company’s shares were legal and noted that there was nothing preventing Yogi from bidding on the house itself.
The other large holder of secured debt is an entity called Inferno Investment, associated with Julien Remillard, a longtime friend from Niami, who loaned Crestlloyd over $ 10 million in 2015 but made a deal with Hankey to be paid second from the proceeds of the sale.
There are other smaller unsecured debts attached to the property, including money owed to contractors. The total debt attached to The One has been estimated at $ 165 million.
In the spring, after Niami defaulted on his debt to Hankey, he offered to live in The One and transform it into an event space with entertainment such as boxing matches and concerts. Hankey was not interested in the plan.
The 944 Airole Way mansion offers luxurious amenities such as infinity pools, spa and beauty salon, billiards room and bowling alley, multiplex cinema and a 50-car garage with carousels to display exotic cars.