With gross revenue reportedly down nearly 90% between 2019 and the date of their filing, Los-Angeles luxury spec home property owner 1369 Londonderry Estate filed for Chapter 11 bankruptcy on December 9, 2020, according to official bankruptcy documents from the US Bankruptcy Court for the Central District of California.
1369 Londonderry Estate is the owner of the nearly $30 million luxury spec home at 1369 Londonderry Place in the Hollywood Hills, which has been the subject of several controversies including mechanics liens, litigation, and written warnings handed down by the Los Angeles Police Department for violating the city’s COVID-19 mitigation code.
According to a Real Deal investigation published in early December of 2020, the developer of 1369 Londonderry Place, former Hollywood movie producer Nile Niami, was hit with multiple warnings and fines in October of 2020 for having large parties amidst the pandemic at several of his luxury properties in L.A. — including at 1369 Londonderry Place.
Niami is also the developer of the notable $500 million “The One” megamansion in Bel Air — which was hit with $325,000 in construction liens as of August of 2020.
1369 Londonderry Estate claims in the bankruptcy filing that they owe $59,244,349.62 in secured and unsecured claims to 22 creditors — seven of which are contractors and material suppliers.
At the time of their bankruptcy filing in December of 2020, 1369 Londonderry Estate reported having:
- $59,244,349.62 in total liabilities
- $30,000,000 in total assets
- $0 in total checking
- $0 in accounts receivable
From January 1, 2020 until the December 1 bankruptcy filing date, Londonderry Estate reported $20,000 in gross revenue, according to the bankruptcy filing. The source of revenue is listed as “rental income.”
In 2019, Londonderry Estate reported earning $190,000 in gross revenue — signalling a 89.5% decrease in revenue from 2019 to the company’s current revenue total in 2020.
Londonderry Estates lists $0 in gross revenue for the fiscal year of 2018 in their bankruptcy filing.
What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy allows a debtor to “reorganize” their finances. In order to reorganize, the debtor must draft a debt repayment plan for their creditors. This plan not only has to be approved by the overseeing bankruptcy court, but as the debtor’s creditors.
As stated by USCourts.gov: “A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.”
Both businesses and individuals are allowed to file for voluntary relief under Chapter 11 bankruptcy. However, the debtor’s Chapter 11 filing could be reverted to a Chapter 7 filing if they are unable to create a debt repayment plan that is approved by the creditors. Under a Chapter 7 filing, the debtor’s assets are liquidated.
Londonderry Estate’s Chapter 11 bankruptcy filing lists 15 unsecured claims, 7 secured claims
At the time of their bankruptcy filing, Londonderry Estate reported having 15 unsecured claims worth a combined $579,535.62.
Of the 15 creditors, at least seven are contractors or material suppliers:
- Blanca Tile – $24,560.00
- Italian Luxury Group – $52,494.27
- Jensen Construction – $18,057.72
- JMS – $9,785.00
- Powertek Electric Inc – $11,940
- Snyder Diamond – $187,430
- West Valley Green – $28,500
According to 1369 Londonderry Estate’s official bankruptcy filing, the property owner has seven secured claims worth a combined $58,664,814.
Developer Nile Niami hit with fines for large gatherings amid COVID-19 pandemic
The Real Deal reports that developer of 1369 Londonderry Place Nile Niami faced fines from the city of Los Angeles for gatherings that violated the city’s coronavius mitigation codes. The report states that instead of receiving a fine for the illegal gathering that specifically took place at 1369 Londonderry Place in October, Niami was instead dealt a written warning.
However, the report also states that of the 15 total large gathering fines authorities issued around the city between April and August 2020, Niami’s luxury properties were subject to a third of them.
According to the Real Deal report, “Niami denies approving any of the parties and says he has cooperated with the city.”
The report also states Niami owns at least 10 luxury residential properties across Los Angeles, most of them in the Santa Monica Mountains, and that he’s reportedly been “renting out the mansions to young social media influencers.”
1369 Londonderry Place faces mechanics liens, other litigation
The unpaid construction work claim states that 1369 Londonderry Estate was both the property owner and the hiring party.
On September 14, 2020, a Notice of State Tax Lien was handed down against 1369 Londonderry Estate for their failure to pay taxes in 2017, according to the California Department of Tax and Fee Administration.
According to the tax lien filing, 1369 Londonderry Estate still owes $29,539.67 in back taxes from 2017.
The property has also undergone a Notice of Trustee sale for foreclosure. On November 9, 2020, a notice of trustee’s sale took place between First American Title Insurance Company and 1369 Londonderry Estate, according to the Los Angeles County clerk’s office.