SEOUL: With "overwhelming" backing from creditors and other associated parties, a Seoul court has authorised SsangYong Motor's rehabilitation plan, paving the path for the automaker to resume operations.

Mahindra now owns 74.65% of SsangYong after purchasing a 70% interest in the automaker for 523 billion won in 2011.

The approval, which came one month after SsangYong submitted its restructuring plan to the Seoul Bankruptcy Court, effectively greenlights a local consortium's bid to buy the debt-laden carmaker.

In June, the court picked the consortium, led by chemical-to-steel firm KG Group, as the final bidder to acquire SsangYong, as per reports. The court chose the consortium, led by chemical-to-steel company KG Group, as the winning bidder to purchase SsangYong in June.

In a hearing presided over by the court, SsangYong's creditors, including banks, subcontractors, and shareholders, approved the carmakers proposed debt settlement plan, the firm said in a statement.

If all the anticipated debt payments are made on time, SsangYong anticipates graduating from the court-mandated debt rescheduling programme this year.

According to the agreement, SsangYong will pay its debtors 237 billion won ($177 million), its subcontractors 13.97 percent of the 393.8 billion won it owes them in cash, and its Indian parent Mahindra & Mahindra Ltd. 5.43 percent of the 136.3 billion won.

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