SsangYong Motor has reportedly filed for receivership, after failing to pay back about 165 billion won ($149.5 million) worth of debts to its creditor banks.

The Korea Herald reported that the company said its executive board has made the decision to apply for corporate rehabilitation and related documents were submitted to the Seoul Bankruptcy Court.

"We are truly sorry to worry all interested parties, financial institutes and employees at this time when the world is facing difficulties from the COVID-19 pandemic," the company said in the statement that also said all board members have resigned.

Last week SsangYong said it had missed scheduled repayments to three creditors worth a combined KRW60bn (US$55m), according to local reports.

The subsidiary of Indian carmaker Mahindra & Mahindra has outstanding loans of KRW30bn with Bank of America Merrill Lynch, KRW20bn with JP Morgan and KRW10bn with BNP Paribas, which together account for 8% of its total equity.

A further KRW90bn of debt is due to be repaid to Industrial Bank of Korea today (21 December).

In a recent regulatory filing Ssangyong said it "does not have enough funds to repay the debt due to worsening business conditions", adding "we will try to extend the debt maturity with our creditors".

India's Mahindra & Mahindra, the largest shareholder of SsangYong, said it would take responsibility and help negotiate with interested parties to normalize operation of the company, according to the Korean firm.