Office Properties Income Trust Navigates Chapter 11 Restructuring

Office Properties Income Trust (OPI) is currently navigating a critical financial restructuring under Chapter 11 bankruptcy protection. The real estate investment trust is undertaking significant measures to address its substantial $2.4 billion debt load, with a planned asset sale in Arizona representing a key component of its survival strategy.

The company’s financial distress became evident in September when OPI failed to make millions in interest payments. This triggered a series of credit rating downgrades by S&P, which first moved the rating to ‘SD’ (Selective Default) before ultimately settling at ‘D’ (Default). The situation culminated in an official bankruptcy filing on October 30.

The severity of OPI’s position was Read more...