Redwood Capital Among Creditors to Get Control of Bankrupt REIT

Office Properties Income Trust, the bankrupt owner of more than 120 office buildings, is nearing a deal to settle a months-long restructuring case by handing ownership to creditors in exchange for cutting its debt load by $700 million to about $1.7 billion.

Under the proposed settlement, Office Properties will be controlled by a noteholder group that includes Redwood Capital Management, Whitebox Advisors and Helix Partners Management, according to court documents.