Office Properties Income Trust exits Chapter 11 with $714M debt cut

Office Properties Income Trust (Nasdaq: OPI) has emerged from Chapter 11 bankruptcy after completing its financial restructuring, the company announced in a press release.

The U.S. Bankruptcy Court for the Southern District of Texas confirmed OPI's Plan of Reorganization on April 22, 2026. Through the restructuring, OPI reduced its total debt by approximately $714 million. The post-restructuring balance sheet carries $1.7 billion in debt and approximately 22 million newly issued common shares.

All previously outstanding common shares were canceled upon emergence. Trade and operational creditors are to receive payment in full. OPI's newly issued common shares are expected to begin trading on Nasdaq under the symbol "OPI" on June 18, 2026.

Key debt transactions included amending and restating a $425 million revolving credit facility at 9.1% interest, reinstating $300 million of 9.0% Senior Secured Notes due March 2029 and $177 million of mortgage debt. Holders of the 3.25% Senior Secured Notes due March 2027 received approximately $385 million of newly issued 8.375% senior secured notes due December 2029. Holders of the 9.0% Senior Secured Notes due September 2029 received approximately $420 million of newly issued 10.0% senior secured notes due June 2031 along with newly issued common shares.

A significant portion of OPI's common shares are now held by former noteholders, including affiliates of Helix Partners Management LP and Redwood Capital Management, LLC. Jonathan Heller, founder and chief executive of Helix Partners Management LP, will serve as chairman of OPI's newly formed board of directors.

The RMR Group (Nasdaq: RMR) will continue to manage OPI under new five-year business and property management agreements. Yael Duffy remains president and chief executive officer, and Brian Donley continues as chief financial officer.

OPI's portfolio consists of 122 wholly owned properties across 29 states and the District of Columbia, totaling approximately 17.1 million rentable square feet.

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