An office REIT owned by Newton-based The RMR Group has ended negotiations with its creditors, likely sending bankruptcy negotiations into open court.
Office Properties Income Trust was delisted from the Nasdaq stock exchange after filing for Chapter 11 bankruptcy restructuring in November, with the aim of reducing its debt from about $2.4 billion to about $1.3 billion.
OPI reported a second-quarter net loss of $41.2 million and funds from operation of $9.4 million in July, and hasn’t yet filed a third-quarter report with the SEC.
OPI’s Dec. 23 filing with the Securities and Exchange Commission said neither it nor its creditors made proposals to the others about how to restructure OPI’s debt by a Dec. 22 deadline, and the mediator terminated talks. Creditors include Wells Fargo Bank,
Negotiations “are not currently continuing, and may or may not resume in the future,” the filing added, likely kicking the restructuring over to bankruptcy court.
An August securities filing said the REIT had identified 26 of its properties, including three in Massachusetts totaling 204,000 square feet, that were “challenged” or in “challenged markets” for potential sale or redevelopment.
OPI owns 17.12 million square feet of office space across 122 buildings in markets across the country, but with a concentration in Washington, D.C. That city’s office market has been hit hard by the Trump administration’s cuts to the federal workforce. Around 17 percent of OPI’s square footage is leased to the federal government.




