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Get filing alertsOPI secures 27-day DIP loan extension as bankruptcy losses reach $50.5M
Filed May 6, 2026 · Period ending April 30, 2026 · ~1 min read
Key Changes
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DIP lenders extended the up to $125M bankruptcy financing maturity from May 4 to May 31, 2026, providing temporary liquidity relief but signaling continued time pressure to finalize the Chapter 11 reorganization plan.
Item 8.01 — Other Events verify on EDGAR → -
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Company disclosed $2.77B in unsecured debt subject to compromise and $1.31B in secured debt, with total liabilities of $4.23B exceeding assets of $3.60B by $626M.
Exhibit 99.1 view on EDGAR → -
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Received final $10.7M tranche of DIP facility on March 13, completing the syndication and bringing total DIP borrowings to $85M to fund restructuring operations.
Exhibit 99.1 view on EDGAR → -
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Reported $3.0M net loss for March 2026 and cumulative losses of $50.5M since the October 2025 bankruptcy filing, driven by $9.7M in monthly professional fees and $1.8M in reorganization costs.
Exhibit 99.1 view on EDGAR → -
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Cash position improved to $88.9M at March 31 from $83.3M at month start, reflecting DIP funding partially offset by $5.1M in disbursements including $16.8M cumulative bankruptcy professional fees.
Exhibit 99.1 view on EDGAR →
Summary
Office Properties Income Trust secured a critical 27-day extension on its up to $125 million debtor-in-possession financing, pushing the maturity from May 4 to May 31, 2026. The extension, granted by consenting noteholders, provides breathing room but underscores the urgency facing the company as it works to finalize its Chapter 11 reorganization plan. The company remains deeply insolvent, with liabilities exceeding assets by $626 million and $2.77 billion in unsecured debt subject to compromise.
The March 2026 operating report shows the company received the final $10.7 million tranche of its DIP facility, bringing cash to $88.9 million, but continues burning through resources. Monthly losses of $3.0 million and cumulative bankruptcy losses of $50.5 million reflect the weight of $9.7 million in monthly professional fees and ongoing reorganization costs. With the DIP facility now set to mature in less than a month, equity holders face near-certain elimination given the massive liability overhang, while creditors await a reorganization plan that will determine recovery rates on the $4.23 billion debt stack.
Section-by-Section Diff
Event · Exhibit 99.1
Office Properties Income Trust filed its March 2026 monthly operating report, disclosing $10.7M DIP loan receipt and ongoing Chapter 11 operations.
Added in current filing · view on EDGAR →
The remaining $10.7 million amount of the Tranche A2 Term Loan was syndicated to eligible participants of the DIP Facility. The syndication process terminated on February 26, 2026, at 5:00 p.m. (prevailing Eastern Time), and the Debtors received the $10.7 million Tranche A2 Term Loan on March 13, 2026.
Office Properties Income Trust received the final $10.7 million tranche of its DIP facility on March 13, 2026, completing the syndication process that began in February. This brings total DIP borrowings to $85 million ($10M interim + $75M final), providing liquidity for the Chapter 11 restructuring.
Added in current filing · view on EDGAR →
Profit (loss) $-3,037,028 $-50,522,438
The company reported a net loss of $3.0 million for March 2026 and cumulative losses of $50.5 million since the October 30, 2025 bankruptcy filing. The monthly loss reflects ongoing restructuring costs, interest expense of $893,707, and reorganization items of $1,752,188.
Added in current filing · view on EDGAR →
a. Debtor's professional fees & expenses (bankruptcy) Aggregate Total $9,716,005 $16,771,385 $9,716,005 $16,771,385
Bankruptcy-related professional fees totaled $9.7 million in March 2026, bringing cumulative fees to $16.8 million since the petition date. Lead counsel Latham & Watkins accounted for $4.4 million of the monthly total, with financial advisor AP Services at $3.4 million.
Added in current filing · view on EDGAR →
d. Cash balance end of month (a+b-c) $88,943,367
Office Properties Income Trust ended March 2026 with $88.9 million in cash, up from $83.3 million at the start of the month. The increase reflects the $10.7 million DIP loan receipt and $10.8 million in total receipts, partially offset by $5.1 million in disbursements.
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The DIP Facility was initially scheduled to mature on May 4, 2026, and provides that such date could be further extended with the consent of certain holders of the Company’s 9.000% Senior Secured Notes due September 2029 (the “Consenting September 2029 Noteholders”). On May 4, 2026, the Consenting September 2029 Noteholders agreed to extend the maturity date of the DIP Facility to May 31, 2026.
The company's debtor-in-possession financing facility, which provides up to $125 million in secured bankruptcy financing, was set to mature on May 4, 2026. On that date, the consenting noteholders agreed to extend the maturity to May 31, 2026, giving the company an additional 27 days to complete its Chapter 11 restructuring. This extension provides temporary liquidity relief but indicates the company remains under time pressure to finalize its reorganization plan.
Added in current filing · verify on EDGAR →
Pursuant to the Final Order Pursuant to Sections 105, 361, 362, 363, and 364 of the Bankruptcy Code and Rules 2002, 4001, 6004, and 9014 of the Federal Rules of Bankruptcy Procedure (I) Authorizing the Debtors to Use Cash Collateral and Obtain Secured Postpetition Financing; (II) Granting Liens and Superpriority Administrative Claims; (III) Providing Adequate Protection; (IV) Granting Related Relief [Docket No. 785] (the “Final DIP Order”), on February 5, 2026, the Company entered into an amended and restated secured debtor-in-possession term loan credit agreement with lenders party thereto from time to time and Acquiom Agency Services LLC, as administrative agent and collateral agent, which provides for a multiple draw secured debtor-in-possession term loan facility in an aggregate principal amount of up to $125.0 million (the “DIP Facility”).
The company disclosed that it entered into a $125 million secured DIP financing facility on February 5, 2026, under court approval. The facility is a multiple-draw term loan with Acquiom Agency Services as agent, and grants the lenders superpriority administrative claims and liens on company assets. This financing is critical for funding operations during the Chapter 11 bankruptcy proceedings.
Event · Item 7.01 — Regulation FD Disclosure
OPI filed Monthly Operating Reports with Bankruptcy Court covering March 2026 operations during ongoing Chapter 11 proceedings.
Added in current filing · verify on EDGAR →
On April 30, 2026, the Debtors filed their Monthly Operating Reports (the “MORs”) with the Bankruptcy Court. The MORs provide financial and operational information regarding the Company’s performance during the period of March 1, 2026 through March 30, 2026.
The company filed Monthly Operating Reports with the Bankruptcy Court covering its March 2026 operations. These reports are required filings during the Chapter 11 bankruptcy proceedings that began in October 2025. The MORs provide financial and operational performance data but were not prepared under GAAP and were not audited.
Added in current filing · verify on EDGAR →
The Debtors continue to operate their businesses and manage their properties as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.
The company confirms it continues operating as debtor-in-possession under Bankruptcy Court supervision. This means OPI retains control of its business operations and property management while working through the Chapter 11 restructuring process.
Added in current filing · verify on EDGAR →
The MORs were not audited or reviewed by independent accountants, were not prepared in accordance with generally accepted accounting principles, are in a format prescribed by applicable bankruptcy rules and guidelines and are subject to future adjustment and reconciliation.
The company warns that the Monthly Operating Reports have significant limitations: they are unaudited, not prepared under GAAP, follow bankruptcy-specific formats, and may be adjusted later. The reports were prepared solely for Bankruptcy Court compliance, not as a basis for investment decisions.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 25, 2026 · How we verify