Office Properties Income (OPI) has successfully completed its financial restructuring and has emerged from Chapter 11. OPI achieved its objectives to strengthen its balance sheet, reduce debt and position the company for long-term operational stability.
Pursuant to OPI’s Chapter 11 plan of reorganization confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on April 22, 2026, OPI entered into the following transactions:
Treatment of Debt Claims
- OPI’s $425 million revolving credit facility has been amended and restated and bears interest at 9.1%, and its $300 million of 9.0% senior secured notes due March 2029 and $177 million of mortgage debt have been reinstated.
- Holders of OPI’s 3.25% senior secured notes due March 2027 received approximately $385 million of newly issued 8.375% senior secured notes due December 2029 which require principal payments of $20 million in 2026, $30 million in 2027, $45 million in 2028, and $45 million in 2029, with the balance due at maturity.
- Holders of OPI’s 9.0% senior secured notes due September 2029 received approximately $420 million of newly issued 10.0% senior secured notes due June 2031 and newly issued common shares.
- Holders of OPI’s 8.0% senior priority guaranteed notes received newly issued common shares.
- OPI’s other unsecured noteholders received newly issued common shares and warrants to purchase additional common shares and rights to participate in a $35 million equity rights offering.
Restructuring partners Ray C. Schrock, Andrew M. Parlen, Anu Yerramalli and Keith Simon are leading the Latham team representing OPI in the process, complemented by the firm’s world class corporate, finance, litigation, real estate and insurance teams.
