Co-owner and former executive vice president Arthur Van Diggelen will lead the company, and former vice president of sales and marketing Frank Alexich will become senior executive vice president.

President P. Michael Watson left the company to pursue other opportunities and controller Steve Keller also left Dream Cruises to join a local nonprofit corporation, the company said.

"This restructuring is designed to make us a leaner, more efficient company," Van Diggelen said. "We hope the courts will agree the new Dream Cruises is a better, more focused company. We also hope they will allow us to regain our boats so we can resume normal business operations."

Dream Cruises filed for Chapter 11 bankruptcy protection in March, citing a dispute with one of its creditors, General Electric Capital Corp. The week before, the U.S. Marshals Service seized Dream Cruises' two tour boats because the company was in default of a $1.4 million mortgage on the vessels.

It has been using replacement vessels since then, but because of the inconsistent availability of boats Dream Cruises has temporarily suspended its Kona operations and reduced its cruise schedule on O'ahu. The company's daily dolphin-watching cruises on the Wai'anae Coast continue to operate.

The 10-year-old company conducts whale and dolphin tours, snorkel activities and sunset cruises on O'ahu and the Big Island.

Alexich said Dream Cruises now employs about 50 people — including management — which is about half what it had before filing for bankruptcy.

Alexich said the company will increase its staff if the vessels are returned, but not to the level that it was before.

The company hopes to have the vessels released at its next bankruptcy court appearance on May 20, he said.