Financially troubled budget carrier Eastar Jet filed for court receivership on Thursday. The Seoul Bankruptcy Court is set to review the case next Tuesday.

While filing for rehabilitation, Eastar also asked the court to block any additional reimbursements or expenditure in company funds and to suspend forced seizures or auctioning off of corporate assets, which the court accepted.

However, exceptions will be allowed for Eastar's partner firms to continue stable transactions. The court also added it will seek ways to continuously utilize the low budget carrier's expertise and technology through a merger and acquisition option.

Eastar is one of South Korea's nine low cost airlines. It has been having difficulty finding a new investor after rival Jeju Air scrapped its takeover plan last summer.

The move comes as the COVID-19 pandemic has dealt a harsh blow to the aviation and travel sectors across the board.