Shipping company Gulf Navigation is planning to issue a convertible bond worth up to $130m. Its board of directors approved the issuance in a meeting on 5 January, allowing the bond to be issued in several stages within the next five years.

The Dubai Financial Market-listed company is also planning to cut its capital from AED1.1bn ($300m) to AED551.7 in order to cover its losses, and is looking to increase its foreign ownership limit to 49 per cent, it said in a bourse statement.

It is still looking to sell two very large crude carriers (VLCCs), which had been seized in international ports under the orders of the firm’s creditors.

Over the past year, the company has also gone through several management changes, struggling to cope with global challenges in the oil tankering business. This has caused Gulf Navigation to consistently post losses for the past three years.