Creditors of SUV maker Ssangyong Motor have accepted a revival plan for the company, local reports said today.

In September, Ssangyong filed revival plans with the Seoul Central District Court which must decide if they are feasible for the troubled automaker to remain under court receivership. According to reports at the time, the plans must also be accepted by 75% of creditors with collateral, two out of three creditors without collateral and half of the shareholders before they are implemented.

The Korea Herald said today that the association of creditors, which was made up of close to 600 parts suppliers, said that the majority of its members had agreed to accept the plans. The association will make its position known to other creditors, bankruptcy court and other concerned parties.

According to the revival plans, Ssangyong will repay the secured debts in full, in instalments over five years at 3.84%. Other debts owed to financial institutions will be paid back by converting 43% of the debts into new shares, 47% in cash payments over five years at 3%.

The association has accepted the plan because it believed that Ssangyong's strategy to focus on product development whilst looking for an M&A partner was in the best interests of the business, the report said.