Complex sentence: Following the German defeat in World War I, the German navy, reorganized as the Reichsmarine, was permitted to retain eight pre-dreadnought battleships, two of which would be in reserve, for coastal defense.
Split into simpler sentences: Following the German defeat in World War I, the German navy was reorganized as the Reichsmarine. The new navy was permitted to retain eight pre-dreadnought battleships--two of which would be in reserve--for coastal defense.