Irvine-based CalAmp Corp., which develops software designed to track vehicles and improve company logistics, has filed bankruptcy to complete a debt-cutting deal that hands control of the business to lender Lynrock Lake Master Fund LP.

Publicly traded CalAmp filed Chapter 11 on Monday in Delaware to execute a restructuring deal where Lynrock has agreed to swap $229 million in secured notes for 100% of the equity in the reorganized business. Other CalAmp creditors would be fully repaid in cash, the company said in court papers.

CalAmp estimated its assets are worth about $281.2 million and that its liabilities are worth about $355.4 million. Shares of the company dropped as much as 61% on Monday and declined 81% so far this year.

Before filing bankruptcy, CalAmp said its financial performance had been deteriorating and that it faced “imminent defaults” under its lending documents. The company said it also worried about its stock potentially being delisted from Nasdaq, which would have likely triggered a default, according to court documents.

In response, the company retained Oppenheimer & Co. as a financial adviser and investment banker to negotiate with lenders. CalAmp has already started soliciting creditor votes on its debt-cutting plan and will seek bankruptcy court approval of the restructuring on July 11, according to court documents.

If the restructuring is completed, CalAmp will become a private company, according to a press release.