A debt swap will see creditors own more than 80% of Korean shipbuilder Hanjin Heavy Industries & Construction.
The company will issue new shares worth KRW 687.4bn ($609m) as part of its refinancing, according to a filing from main creditor Korea Development Bank (KDB).
Both domestic and overseas creditors are involved.
Hanjin said last week that parent group Hanjin Heavy Industries & Construction Holdings (HHICH) will lose control of the shipbuilding business in a capital reduction.
The company is retiring 86.3% of outstanding shares, including the entire 30.98% holding of HHICH.
The remaining stock will be reduced on a 5:1 ratio, cutting equity to KRW 72.7bn from KRW 530.3m.
Hanjin's Philippines yard HHIC-Phil filed for court rehabilitation in January after defaulting on debt of $400m.
The Korean parent company's stock was then suspended due to capital erosion.
Last month, it agreed a debt restructuring deal for HHIC-Phil, which involves swapping Philippines lenders' debt for equity.
