US Bankruptcy Chapter 11 Insolvency SEC Filings — April 28, 2026

Q1 revenue declined 22% YoY to $118M (vs office REIT avg -5% YoY), occupancy fell to 65% from 82%, confirming underperformance

AFFO swung to -$0.15/share YoY from +$0.45/share, margins compressed 1,200 bps to -15%, worst in peer group

Debt-to-Equity surged 45% YoY to 5.8x (vs sector 3.2x), interest coverage <1x for 3rd straight quarter

Dividends fully suspended (previously $0.40/quarter), first cut since inception, eroding 100% yield

No insider purchases in last 6 months, 2 executives resigned post-filing announcement, holdings down 15%

Restructuring plan targets 40% debt cut ($840M) via asset sales at 70% LTV, potentially accretive long-term

Forward guidance for emergence Q2-Q4 2027 with deleveraging to 3.5x D/E, trading at 0.1x book value

Operational volumes (sq ft leased) down 18% YoY to 12M sq ft, but prime assets (DC/NY) at 85% occupancy outlier

Mixed sentiment: bearish on immediate equity risk but bullish on $1.2B liquidity runway covering 18 months

Capital allocation shift to zero buybacks/dividends, 100% to debt paydown, prioritizing survival over returns

QoQ net loss widened 35% to $62M from $46M, driven by $30M vacancy charges

Pledged 25% insider holdings pre-filing, no new transactions, indicating caution

Chapter 11 filing with $2.1B debt, liquidity at $1.2B but burning $80M/quarter, risk of conversion to Ch7

Cash reserves down 15% YoY to $1.2B, coverage for only 15 months runway amid $200M annualized interest

Vacancy spiked to 35% YoY (+13% pts), same-property NOI down 28% YoY to $85M

No buys, 2 C-suite resignations, holdings reduced 15% via pledges, signaling distress

D/E 5.8x (up 45% YoY), covenants breached on 3 facilities totaling $500M

No FY2026 AFFO guide, emergence delayed potential to 2028 if asset sales falter

100% suspension, yield drops to 0% from 15% trailing, first since 2013 IPO

Gross margins -450 bps QoQ to 42%, operating loss $45M vs breakeven YoY

Court approval for DIP financing needed by May 15, rejection risks shutdown

Fully bearish analysis on equity recovery (<10% probability), creditor takeover likely

Senior debt trading at 45 cents/dollar, $840M targeted reduction implies 2x upside on emergence

$1B portfolio (prime DC/NY offices at 85% occupancy) undervalued at 8x NOI vs sector 12x, sale catalyst Q3 2026

Post-Ch11 emergence at 3.5x D/E, AFFO recovery to $0.60/share projected 2028, 300% equity upside

Stock down 60% pre-filing, further 80% wipeout likely on dilution, high short interest potential

$300M debtor-in-possession facility at prime+200bps, equity warrants for early investors

Unsecured notes at 25 cents/dollar, conversion to 60% equity post-reorg undervalued

Guidance for 10% occupancy rebound H2 2026 via backfill incentives, NOI +15% potential

OPI trading at 0.1x book vs peers 0.6x, merger arbitrage if acquired in bankruptcy

Earnings/sentiment dispersion high, options implied vol 150% for court hearings

Pair short OPI/long sector ETF, exploit 25% relative underperformance YoY

1/1 filings in stream show 22% YoY revenue drop avg, signaling broader sector distress with 30%+ vacancy norms

D/E ratios averaging 5.8x (up 45% YoY across filings), interest coverage <1x forcing restructurings

100% of insolvent filers halted payouts, yield compression from 15% to 0%, eroding income appeal

Avg 17% YoY decline to 65%, driven by remote work; prime markets outperforming at +20% relative [MIXED, SELECTIVE OPPORTUNITIES]

Forward plans target 40% debt cuts via sales, emergence 12-18 months, potential alpha in distressed plays

Zero buys in filings, pledges up 25%, management conviction low amid sector turmoil

Monitor DIP financing approval and asset sale motions, May 15, 2026, for liquidity extension

Watch Form 4s for post-filing sales/pledges by remaining executives, next 30 days

Track docket for plan confirmation timeline, target Q4 2026, delays signal prolonged pain

Monthly leasing metrics due mid-May 2026, watch for H2 backfill progress vs 10% guidance

Monitor filings from similar office REITs (e.g., SLG, ARE) for contagion post-OPI event

Unsecured note tenders expected Q2 2026, pricing to gauge recovery rates

Updates on deleveraging progress, earnings call proxy June 2026

Watch for bids on $1B portfolio, announcements by July 2026, undervaluation arb