Ssangyong Motor Company said it had exited 18 months of court receivership this week after the Seoul Bankruptcy Court accepted a bid from a consortium led by local chemical and steel company KG Group to acquire the debt laden automaker in August.

Ssangyong Motor entered court receivership in April 2021 after its Indian parent Mahindra & Mahindra failed to find a buyer for the company and declined to invest further funds in the automaker.

The court had already approved the company’s creditor debt repayment plan, clearing the way for the consortium to complete the takeover.

A spokesman said: “The company has completed its debt settlement as scheduled under its rehabilitation plan.”

Last September, the court approved the consortium’s rehabilitation plan for Ssangyong, including the issue of new shares to raise capital to pay creditors.

The acquisition was also cleared by the fair trade commission on the grounds it would not hurt market competition.

KG Group consortium was expected to emerge as Ssangyong’s majority shareholder with a 61% stake, having bid KRW950bn (US$736m) for the company including KRW600bn in operating capital.