Dubai-headquartered shipping company Gulf Navigation is planning to sell its two very large crude carriers (VLCC’s) to Turkish investment company DHT Holding.

The parties have signed a memorandum of understanding (MoU) for the sale of the vessels Gulf Eyadah and Gulf Sheba. The VLCCs had been seized in international ports under the orders of the firm’s creditors in October.

The sale is part of Gulf Navigation’s plan to tackle its debt after consistently posting losses over the past three years. It is also looking at cutting its capital from AED1.1bn ($300m) to AED551.7 and increasing its foreign ownership limit to 49 per cent.