One of the corporate entities behind multifamily developer ZOM Living filed for bankruptcy roughly six months after losing a civil case for breach of contract and being ordered to pay a $323M judgment.
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Winter Springs, Florida-based ZOM Holding Inc. filed for Chapter 11 bankruptcy protection Friday as it also faces an ongoing fight in appeals court against Gray Development Group. The holding company doesn’t own any of ZOM’s multifamily properties and lists its assets as trademarks and fee rights worth between $1M and $10M against $541M in liabilities, including the civil judgment.
The company filed for Chapter 11 bankruptcy “to continue to pursue ZOM Holding, Inc.’s pending appeal of the over $300M jury verdict against ZOM Holding, Inc. awarded in October 2025,” ZOM Living said in a statement to Bisnow on Monday.
ZOM Holding LP, a separate entity created in 2017 as the holding company for ZOM’s new developments, had a secured line of credit with ZOM Holding Inc. with a $3.8M balance at the time of the bankruptcy filing and has also agreed to fund the Chapter 11 reorganization.
ZOM Holding LP is providing a stalking horse asset purchase agreement to take all or nearly all of ZOM Holding Inc.’s assets, according to court filings in the U.S. Bankruptcy Court for the Middle District of Florida. ZOM expects to submit a plan for a court-supervised three-month bidding and sale process as part of a debtor-in-possession financing agreement.
The Chapter 11 filing isn’t expected to impact operations at any ZOM properties, the company said in the bankruptcy filing.
“ZOM Holding, LP has not filed for bankruptcy and is continuing to operate in the ordinary course of business,” the company said. “To ensure that ZOM Holding LP’s operations remain unaffected, ZOM Holding LP has agreed to provide debtor in possession financing to ZOM Holding, Inc.”
ZOM Living is a merchant developer that has built roughly 25,000 units since its founding nearly half a century ago. The private firm said it had more than 5,000 units under construction in March 2025.
A jury in Maricopa County, Arizona, found that ZOM Living breached its contract with Gray Development as part of a dispute over the joint development of $1.4B worth of projects.
Gray Development accused ZOM of entering into confidentiality agreements and pushing for details for the 13-project, decadelong development pipeline before shutting the developer out of the projects and moving ahead without it.
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