Private Dutch shipowner Vroon has been taken over by its lenders as part of a second refinancing in three years.
The owner of about 100 tankers and offshore vessels said a deal has been reached with its banks to swap borrowings for equity.
The founding Vroon family will lose majority control of the company as a result.
The restructuring deal was reached to "secure financial flexibility to deliver on future growth and profitability", the shipowner said.
"For several years Vroon has been in discussions with its lenders to resolve its over-indebtedness," it added.
Debt will be cut from almost €1bn ($1.1m) to €350m.
About 35 offshore vessels controlled through Vroon Offshore Services (VOS) are being transferred to a "warehouse" company set up the banks.
No job losses among the 1,800 workers are currently expected.
Vroon said the transaction, together with ship disposals last year, will lead to a "very significant" strengthening of the balance sheet and allow for continuity of the company.
Blystad snapped up boxships
"In return for the debt write-off, the company lenders will become the majority shareholders of Vroon. This agreement is still subject to formal approvals and is expected to be implemented in the first half of 2022," it said.
All 18 lenders must sign off on the deal before April.
In cooperation with banks, the company has agreed to divest all container ships, bulkers, crew transfer vessels and car carriers to repay debt.
Last year, Norwegian investor Arne Blystad bought six container ships from Vroon for close to $150m.
Vroon, founded in 1890, said it sold 18 vessels last year that were deemed to be uneconomic or non-strategic, including two other container ships, a bulker and a general cargo ship.
Clarksons still lists it as controlling 119 units, comprising product tankers, car and livestock vessels, offshore ships, two floating accommodation units, a bulker and a boxship.
The fleet will be reduced to about 100 after sales are completed.
The company's last refinancing in 2018 involved $1.3bn of debt extensions to 2021.
Fourth-generation owner Coco Vroon stepped down as chief executive.
His replacement, Herman Marks, told TradeWinds the Vroon family had retained ownership and control of the business at that time.
No debt was swapped for equity in that restructuring.
Vroon has also released its audited results for 2020, with solid cash flow despite challenging market conditions.
VOS was hit by a severe downturn in oil and gas markets as the pandemic lowered demand, but other sectors were less seriously affected.
Non-cash loss for 2020
Revenue was $356m in 2020, with Ebitda coming in at $74m.
The net loss was $314m, however, mainly as a result of a $214m non-cash asset impairment.
"Continued losses and asset impairments over the previous five years resulted in a negative group equity per year-end 2020," Vroon said.
The board has implemented measures to reduce costs and preserve strong cash generation during the year.
"Overall, 2020 was another turbulent year for the global shipping industry and for Vroon," the shipowner added.
"As in previous years, most of our businesses were affected by significant market volatility. While we are proud of our achievements during the year, we do realise that it will take more time before shipping again becomes a rewarding place for investors and financiers."
The company said market conditions improved gradually in 2021.
"Cash generation remained strong and we anticipate financial results will be an improvement on 2020, despite a smaller fleet," it said.
"We are cautiously optimistic for 2022 and anticipate a continued improvement for our offshore division and most of our remaining deepsea businesses."
