ZOM wins court OK for $5M bankruptcy loan to fund judgment fight
What's the deal? A Florida bankruptcy judge on Tuesday approved luxury apartment developer ZOM's request to borrow $5 million in debtor-in-possession financing, provided by an affiliate, after the debtor reached a temporary truce. The loan is a bridge for ZOM Holding Inc. and two affiliates as they pursue a court-supervised sale.
Why now? ZOM Holding Inc. filed for Chapter 11 protection in the US Bankruptcy Court for the Middle District of Florida to fund its appeal of a roughly $309 million Arizona judgment. A Maricopa County jury found ZOM breached its contract with Gray Development over a joint pipeline of $1.4 billion in projects.
What's the endgame? ZOM expects to submit a plan for a three-month bidding and sale process. The affiliate, ZOM Holding LP, is providing a stalking horse offer to take all or nearly all of ZOM Holding Inc.'s assets, along with the financing.
By the numbers: The holding company lists assets of between $1 million and $10 million against $541 million in liabilities, including the judgment. ZOM LivingDealroom has a profile for this one. Try Dealroom →, a merchant developer founded nearly half a century ago, has built roughly 25,000 units and had more than 5,000 under construction in March 2025.
What could go wrong? ZOM says the filing is not expected to affect operations at any of its properties, and that ZOM Holding LP continues to operate normally. Still, the appeal is unresolved, and a court-supervised sale carries its own uncertainty.
The signal: This is a legal-judgment-driven restructuring, not a sign of trouble across ZOM's operating portfolio. But it lands as apartment owners face a heavy refinancing burden, with roughly $757 billion in multifamily debt due between 2026 and 2028.
Read more: law360.com
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