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Creditors of Office Properties Income Trust have put forward a plan to assume control of the bankrupt real estate investment trust, according to a filing made in a Texas court. The proposal, reported by the Boston Business Journal, represents a creditor-led attempt to direct the restructuring process following the REIT’s Chapter 11 filing. A vote by creditors on the plan is expected to take place by mid-April, setting a relatively near-term decision point for the future of the company.
The creditor group includes several hedge funds and an institutional investor: Helix Partners Management, Redwood Capital Management, Whitebox Advisors and Boston-based Liberty Mutual Investments. These creditors are seeking to influence the outcome of the bankruptcy case by proposing a path that would transfer control of the REIT as part of the court-supervised process. Specific terms of the proposal, including how different creditor classes and existing shareholders would be treated, were not detailed in the information provided.
Office Properties Income Trust, based in Newton, MA, sought protection under voluntary Chapter 11 bankruptcy in October 2025. At that time, the company disclosed that it was facing a significant near-term debt burden, with nearly $280 million in obligations maturing in the current year and an additional $771 million coming due the following year. Against those maturities, the REIT reported only $90 million in available liquidity in its most recent earnings release at the time of the filing, underscoring the pressure on its balance sheet and its ability to address upcoming debt obligations.
The REIT is one of four publicly traded real estate investment trusts managed by the RMR Group, which is also headquartered in Newton. Office Properties Income Trust’s portfolio consists of 125 office and mixed-use properties located across the United States, totaling 17 million square feet. The breadth of the portfolio and the national footprint underscore the broader implications of the restructuring for multiple office markets, although the specific locations and performance of individual assets were not disclosed in the available information.
The proposed creditor takeover plan now moves into a decisive phase, with the scheduled mid-April vote determining whether this approach will guide the REIT’s emergence from bankruptcy. The outcome will shape how the REIT’s capital structure is realigned in response to its debt maturity schedule and limited liquidity, and will serve as another reference point for how heavily leveraged office-focused REITs navigate prolonged capital markets and operational stress.
The post Creditors Seek Control of Bankrupt Office Properties Income Trust in Texas Chapter 11 Plan appeared first on CRE Market Beat.
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