A local consortium led by KG Group has been selected as the final bidder to acquire the debt-ridden carmaker SsangYong Motor.

The Seoul Bankruptcy Court on Tuesday chose the KG consortium as the final bidder in the latest auction based on an assessment of its proposal.

Last month, SsangYong picked the consortium as the preliminary bidder in a stalking horse bid, in which the preliminary bidder proposes a price prior to auction.

In the auction, a consortium led by underwear company Ssangbangwool also submitted a bid, but the court approved the KG consortium based on the overall criteria, including the acquisition price and fundraising plans.

The new auction came two months after electric bus maker Edison Motors failed to remit the remaining balance in its takeover deal for SsangYong by the deadline, leading to the carmaker’s search for a new owner.

A formal contract with the winning consortium will be signed in early July.