A takeover battle for SsangYong Motor, the debt-ridden carmaker owned by India’s Mahindra Group, has kicked off between three rival bidders: two medium-sized enterprises and a private equity firm.

KG Group, Ssangbangwool and Pavilion PE each submitted a letter of intent to acquire SsangYong Motor to the lead manager of the deal, EY Hanyoung, industry sources said Tuesday.

After South Korean electric carmaker Edison Motors’ deal to purchase SsangYong Motor went up in smoke, Seoul Bankruptcy Court approved on April 14 for a new auction to take place. The EV bus maker failed to meet the deadline to make the full payment for the proposed takeover.

As SsangYong Motor faces a tight rehabilitation plan deadline on Oct. 15, the carmaker will be adopting a “stalking horse bid,“ according to market observers. It refers to a process in which a bankrupt company seeks a new buyer from a pool of bidders while already having an initial bidder in order to maximize the value of its assets.

The new auction is scheduled to begin in May and SsangYong Motor aims to select a preferred bidder at the end of June.

Market insiders see the chemical-to-financial conglomerate KG Group as the most feasible candidate to take over SsangYong, considering its stable cash flow, funding capability as well as know-how in managing a diverse business portfolio.

KG Group has been seeking to draw up a consortium for the bid with private equity Cactus PE, which it previously partnered up with when it acquired Dongbu Steel in 2019.

Ssangbangwool, a local innerwear maker, meanwhile, has secured 450 billion won ($364 million) in cash that would be used for a “stable financing route” to acquire SsangYong. It is reportedly forming a consortium with local construction company KH Group.

South Korea-based Pavilion PE, making a second bid for acquiring the carmaker, is looking to form a consortium with financial institutions and conglomerates, according to reports.

It is the second bid for Pavilion PE. In a consortium with electric vehicle company EL B&T, Pavilion participated in the bid to acquire the SUV maker but lost against the Edison Motors-led consortium.