Office Properties Income Trust Emerges from Chapter 11, Wiping Out Old Equity and Issuing $805M New Secured Debt
Summary
Office Properties Income Trust has emerged from Chapter 11 bankruptcy, cancelling all old common shares and issuing $805 million in new secured debt along with new equity and warrants. This restructuring fundamentally alters the company's financial and ownership structure.
Key Events
-
Emergence from Chapter 11 Bankruptcy
The company officially emerged from Chapter 11 bankruptcy on June 17, 2026, following the confirmation of its reorganization plan.
-
Old Equity Wiped Out
All 73,943,439 previously outstanding common shares were cancelled, and former shareholders received no value for their holdings.
-
New Secured Debt Issued
The company issued $420 million in 10.000% senior secured notes due 2031 and $385 million in 8.375% senior secured notes due 2029, totaling $805 million in new secured debt.
-
New Equity and Warrants Issued
21,953,577 new common shares (Reorganized Common Equity) were issued to various creditors, along with new warrants exercisable for 5.0% of the Reorganized Common Equity at a strike price of $25.00 per share.
Analysis
Office Properties Income Trust has emerged from Chapter 11 bankruptcy, finalizing a comprehensive restructuring that eliminated all value for existing common shareholders. All 73,943,439 previously outstanding common shares were cancelled, with holders receiving no distribution. The company issued $420 million in new 10.000% senior secured notes and $385 million in new 8.375% senior secured notes, totaling $805 million in new secured debt. In exchange for old claims, 21,953,577 new common shares and warrants for an additional 5% of new equity were issued. This new capital structure leaves the company highly leveraged, with new debt significantly exceeding its current market capitalization. The board composition has also been significantly altered, with new trustees representing major creditors, and the RMR Group continues as manager, receiving 2% of the new equity.
At the time of this filing, OPI was trading at $30.00 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $107.2K. The 52-week trading range was $17.00 to $27.80. This filing was assessed with negative market sentiment and an importance score of 10 out of 10.