Newton-managed Office Properties Income Trust is on the brink of handing control of the struggling office REIT to a coalition of its largest secured creditors, shifting who owns the company while largely keeping the day-to-day property playbook the same. The move flows from a Chapter 11 plan filed earlier this year and would reshape how the company’s roughly 17 million square feet of mostly Class-B office space is financed. The RMR Group, which runs OPI’s properties from Newton, would stay on as day-to-day manager under amended agreements described in the restructuring papers.
As reported by Bisnow, a lender group led by Redwood Capital Management, Helix Partners Management and Whitebox Advisors has emerged as the coalition set to take ownership if the deal secures the necessary approvals. Bankruptcy filings referenced in that coverage show Redwood holds roughly $235.2 million of secured debt, Helix about $159.3 million and Whitebox about $97.6 million, and the consortium also includes investors such as Cetus Capital, ExodusPoint, Liberty Mutual Investments, Mackenzie Financial and Nuveen. Bisnow also notes a separate dispute from MSD Partners and Bracebridge over default interest on notes maturing in 2027, a fight that has added extra friction among creditor camps.
What the plan would do
The debtors’ joint Chapter 11 plan, filed as Docket No. 575, lays out a restructuring that on its face would deleverage the company by roughly $1.1 billion and reallocate recoveries across classes of secured noteholders, using a mix of new secured notes and equity for certain creditor groups. The plan preserves OPI’s management relationship with The RMR Group and calls for amended RMR management agreements and board appointments for the reorganized company. These mechanics, along with the detailed treatment of each creditor class, are spelled out in the court filings and the disclosure statement filed with the bankruptcy court, including the plan itself.
Different outlets show different numbers
Not everyone is counting the same way. One report cited by Bisnow said the transaction would cut about $700 million from OPI’s liabilities and leave roughly $1.7 billion outstanding, a narrower headline reduction than the plan’s stated $1.1 billion figure. The gap comes from different approaches to tallying secured pools, fees and asserted claims. That divergence is one reason creditor votes and pending objections are expected to draw close attention as the case moves toward solicitation and a confirmation hearing.
Timeline and the court process
The debtors filed the plan and related disclosure materials in early January, and the disclosure statement explains that the Solicitation Procedures Order will set a voting record date, a Voting and Opt-Out Deadline and a Confirmation Hearing to consider plan approval. The company has also disclosed the existence of a debtor-in-possession financing package and warned in its SEC filing that, if the plan is confirmed as proposed, existing common shares would be cancelled on the effective date of the plan. For full copies of the plan and the disclosure materials, readers are directed to the court filings referenced below.
Why this matters for the office market
OPI’s case underscores the pressure across the office REIT sector, where heavy near-term maturities, softer valuations and tighter credit have pushed some owners into in-court restructurings or lender takeovers. CreditSights’ reporting of the case describes how the RSA and DIP structure could cement a September-2029 noteholder steering group and materially shift value toward secured lenders while leaving common equity with little or no recovery.
Legal stakes for creditors and shareholders
If the plan is confirmed as filed, secured creditors would receive the structured recoveries set out in the plan, while common shareholders would be wiped out. Lingering disputes over default interest, original-issue discounts or other claim treatments could complicate the timing of confirmation. Those disputes and any formal objections will be decided through the bankruptcy process and by the court at the confirmation proceeding.
OPI’s filings, solicitation materials and creditor notices are available on the case information page maintained by the debtors’ claims agent and on the company’s restructuring site, which include the plan, disclosure statement and voting instructions for holders of record. For the court filings and disclosure materials, see the links cited below.
