In a dramatic turn for the U.S. office real estate sector, Office Properties Income Trust (OPI), a Massachusetts-based real estate investment trust managing 124 office properties nationwide, filed for Chapter 11 bankruptcy protection late Thursday in a Texas court. The company disclosed over $1 billion in debt and unveiled a sweeping equity swap agreement with its senior noteholders.
The Friday announcement detailed that OPI’s restructuring plan hinges on converting approximately $1 billion in notes into equity, effectively handing partial ownership of the company to its creditors in a bid to stabilize finances and reposition for long-term recovery.
$125 Million Lifeline and a Promise of Stability
Despite the bankruptcy filing, CEO Yael Duffy struck an optimistic tone, assuring investors and tenants that operations will continue without interruption.
“We expect no disruptions to our business or properties during the proceedings and anticipate OPI will emerge more stable, financially flexible, and strategically stronger,” Duffy said in the statement.
Backing the restructuring, the noteholders have agreed to infuse $125 million in new-money debtor-in-possession (DIP) financing — a vital injection that will sustain OPI’s day-to-day operations during its reorganization.
