OPI WF Holding LLC, an affiliate of Newton, Massachusetts-based Office Properties Income Trust (OPI), filed for bakruptcy protection on October 31, 2025. The filing comes amid financial strain and a challenging commercial property market.
OPI WF Holding LLC seeks Chapter 11 Protection
OPI WF Holding LLC filed for Chapter 11 in the Southern District of Texas to restructure corporate debt ahead of major maturities, including $280 million due in 2026. The filing followed mounting liquidity pressures driven by declining cash flow and high vacancy rates in the commercial real estate sector.
According to court documents and company statements, OPI entered into a Restructuring Support Agreement (RSA) with holders of its 9.000% Senior Secured Notes due 2029. The agreement aims to convert about $1 billion of existing notes into equity, a move expected to significantly reduce leverage and improve long-term liquidity.
As part of the restructuring, OPI has also secured $125 million in debtor-in-possession (DIP) financing from noteholders to support business operations during the Chapter 11 process.
“Following a thorough review of strategies to address OPI’s funded debt obligations, we are pleased to have reached an agreement with certain noteholders that will meaningfully strengthen OPI’s balance sheet by reducing leverage, lowering debt service obligations and simplifying its capital structure.”, the company’s president and COO said in a recent statement, according to Businesswire.
The filing comes after OPI reported a net loss of $41.2 million in Q2 2025, compared to a $76.2 million profit during the same period last year. The company’s portfolio includes 125 properties totaling 17.3 million square feet, and its 2024 10-K filing had already raised “substantial doubt” about its ability to continue as a going concern due to leverage and limited refinancing options.
The bankruptcy filing is designed to implement the RSA swiftly and ensure continuity across OPI’s national property portfolio. The company said it intends to maintain normal operations throughout the process, with no immediate impact expected on tenants or day-to-day management.
The case is being overseen under the name OPI WF Holding LLC, with assets and liabilities each listed between $100 million and $500 million, and an estimated 100 to 199 creditors, according to initial court filings.
OPI’s restructuring underscores the ongoing pressure on U.S. office REITs, which continue to face high vacancies, elevated interest costs, and evolving tenant demands in a post-pandemic market.
