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.

Final details of the plan should be put into legal documents by Friday, lawyers for Office Properties and two groups of creditors told the judge overseeing the insolvency ...