South Korean automaker Ssangyong Motor was put in courtroom receivership on Thursday after dad or mum firm Mahindra & Mahindra failed to draw an investor by the court-mandated 31 March deadline.

Ssangyong, which largely makes SUVs, filed for chapter on 21 December 2020 after it failed to fulfill important debt obligations with collectors refusing to reschedule reimbursement deadlines. The corporate was given a three-month respite from debt obligations by the Seoul Chapter Courtroom whereas M&M negotiated sale to a possible purchaser.

Mahindra had held talks with US car importer HAAH Automotive Holdings to promote all or most of its 75% stake in Ssangyong since final yr however a letter of intent (LOI) to accumulate the automaker did not arrive earlier than the deadline handed.

The courtroom has now authorized a debt rescheduling course of for Ssangyong after it gained approval this week from the its largest creditor, Korea Improvement Financial institution. That is the second time in 10 years Ssangyong has been underneath courtroom receivership.

Its future now relies on if a brand new investor could be discovered after Mahindra confirmed over a yr in the past it might not make investments additional funds within the firm. Any rescue package deal can be topic to creditor approval.

Final week Ssangyong Motor CEO Yea Byung-tae stepped down from his submit to permit the receivership course of to happen.