A Seoul court on Friday gave the green light to a self-rescue plan proposed by Woongjin Holdings Co., clearing the way for the cash-strapped mid-sized group to make a fresh start.

Under the approved plan, Woongjin Holdings, which owes about 1.57 trillion won ($1.5 billion) to its creditor banks, said it will pay off its debts with proceeds from its stake sale of several subsidiaries.

The group will first sell its stake in its chemical unit, Woogjin Chemical Co.; its food unit, Woongjin Foods Co.; and its book publishing firm under the group’s arm, Woongjin Thinkbig Co., by end of this year, according to the plan. The group will also sell its energy subsidiary, Woongjin Energy Co. by year 2015.

In an unprecedented move, the bankruptcy division of the Seoul Central District Court quickly delivered the ruling, in accordance with the so-called “fast track” system. (Yonhap News)