Mohamed Hadid Clarifies He Isn't Bankrupt, But His Company is Another Story

Mohamed Hadid is either in denial, or splitting a very important financial hair ... when it comes to the bankruptcy docs he's filed over an infamous Bel-Air mansion project.

Gigi and Bella's pop was out in Bev Hills Saturday night when a paparazzo asked him about the news he's gone bankrupt. Mohamed seemed confused, at first, by the question. Fact is, the photog was a little off with the facts.

TMZ broke the story .. Mohamed did file bankruptcy papers last week in L.A., but it's his construction company, 901 Strada LLC, that's gone belly up ... not Mohamed, personally. Watch the video because Mohamed wants the pap -- and the world -- to know he's doing just fine.

As we reported, Hadid filed docs declaring the LLC is between $10 million and $50 million in debt. The company was building the massive Bel-Air mega-mansion, known as the Starship Enterprise, but last month a judge declared it a "clear and present danger" to the surrounding neighborhood.

The court agreed with complaints, from the city and neighbors, that the home sits on an unstable hillside and wasn't built up to safety codes. As a result, the judge says the Enterprise -- which Hadid planned to sell for $100 million -- has to be torn down.

That alone would cost his company $500k, but in the clip it doesn't sound like Mohamed's planning to move the mansion off that mountain.