SsangYong Motor Co., currently under court receivership, is expected to select a lead manager as early as this week to find a new investor, industry sources said Tuesday.

The carmaker didn't confirm the plan to select a lead manager.

US vehicle importer HAAH Automotive Holdings Inc. reportedly remains among the potential bidders though it failed to submit a letter of intent (LOI) to a bankruptcy court to acquire the financially troubled carmaker.

SsangYong's Indian parent Mahindra & Mahindra Ltd. had been in talks with HAAH to sell its majority stake in the Korean unit as part of its global reorganization plan amid the COVID-19 pandemic.

Other potential bidders include local electric bus maker Edison Motors and small electric vehicle maker K Pop Motors, a local private equity fund, according to reports.

SsangYong has been in the court-led debt rescheduling process since April 15, as Mahindra failed to attract an investor amid the prolonged pandemic and worsening financial status.

It is the second time for SsangYong to be under court receivership after undergoing the same process a decade ago.

Court receivership is one step short of bankruptcy in South Korea's legal system. In receivership, the court will decide whether and how to revive the company.

The SUV-focused carmaker filed for court receivership late last year after failing to obtain approval for the rollover of 165 billion won ($147 million) worth of loans from creditors.

Under court receivership, SsangYong's survival depends on whether there will be a new investor to acquire a streamlined SsangYong Motor after debt settlement and other restructuring efforts. (Yonhap)