Cash-strapped SsangYong Motor was put under court receivership for the second time in a decade, after its Indian parent company Mahindra and Mahindra failed to attract an investor amid the prolonged COVID-19 pandemic.

The Seoul Bankruptcy Court on Thursday approved the debt-rescheduling process for the carmaker, ten years after it went through a similar process, which ended with Mahindra acquiring a 70-percent stake for 523 billion won.

SsangYong filed for court receivership in December after it was unable to obtain approval for the rollover of 165 billion won in loans from creditors.

The court granted a three-month suspension of its debt-paying obligation due to Mahindra's talks with U.S. vehicle importer HAAH Automotive Holdings to sell a majority of its SsangYong stake as part of its global reorganization plan.

The court, however, decided to begin the court receivership after the sole potential investor failed to meet the March 31 deadline to submit a letter of intent(LOI) to acquire SsangYong.

Under receivership, the carmaker will be required to submit a rehabilitation plan, to be implemented upon court approval.