Filing Alert: ZOM Living Chapter 11

Update (October 31, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of ZOM Living.

ZOM Holding, Inc. (dba ZOM Living) and its debtor affiliates⁽¹⁾, a Winter Springs, FL-based multifamily development and management company, filed for Chapter 11 protection on Oct. 30 in the U.S. Bankruptcy Court for the Middle District of Florida.

The filing follows a $308.6 million Arizona state-court judgment entered against ZOM Holding, Inc. in May 2026 in favor of two Bruce Gray entities. The entities alleged that the company breached a 2019 non-circumvention agreement after a non-debtor indirect subsidiary of ZOM Holding, LP (ZHLP) acquired four development parcels in Phoenix and Scottsdale in the 2020 Chapter 7 cases of the entities that held them. ZHLP is a separate non-debtor holding company that has held new ZOM development projects since 2017. The company says it was neither the purchaser of the parcels nor part of the purchaser's organizational structure. It has appealed the judgment, arguing among other things that the plaintiffs recovered profits from rights they never owned. Settlement efforts, including a July 2026 mediation, reached an impasse. On Oct. 1, 2026, the plaintiffs recorded the judgment in Seminole County, Florida, seeking to domesticate and enforce it.

The debtors intend to keep operating while they pursue a sale of substantially all of their assets, including claims and causes of action, through a proposed twelve-week court-supervised process. As of the petition date, they were finalizing a stalking horse asset purchase agreement with ZHLP or its designee. ZHLP holds the debtors' only material secured debt, a prepetition line of credit with about $3.8 million outstanding. It is also the proposed lender under a new-money DIP facility of up to approximately $6.5 million, even as it contests transfer and successor-liability claims on which the company has made demand. The company will separately seek relief from the automatic stay to continue its appeal. Beyond the judgment, the debtors' liabilities include hundreds of millions of dollars of guaranty and bond indemnity obligations related to ongoing projects. The filing will cause defaults under the guaranties, which may be assumed through the sale process.

ZOM Holding, Inc. reports $1 million to $10 million in assets and $500 million to $1 billion in liabilities. The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 26-08509.

⁽¹⁾ ZH Development I, LLC and ZOM Associates, Inc.

Top Unsecured Claims

Key Parties

Counsel:

• Elizabeth A. Green
  Baker & Hostetler LLP
  Email: egreen@bakerlaw.com

Financial Advisor / CRO:

• SOLIC Capital Advisors (Neil F. Luria)

Equity Security Holders:

• FLOR Holding USA, Inc. – 100% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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