Cash-strapped SsangYong Motor on Monday filed for court receivership, after failing to pay back about 165 billion won ($149.5 million) worth of debts to its creditor banks.

In a statement, the automaker said its executive board has made the decision to apply for corporate rehabilitation and related documents were submitted to the Seoul Bankruptcy Court in the afternoon.

“We are truly sorry to worry all interested parties, financial institutes and employees at this time when the world is facing difficulties from the COVID-19 pandemic,” the automaker said in the statement.

“All members of the executive board have submitted their resignations. The company will make its utmost efforts to transform the company stronger and more competitive.”

India’s Mahindra & Mahindra, the largest shareholder of SsangYong, said it would take responsibility and help negotiate with interested parties to normalize operation of the company, according to the Korean firm.

SsangYong has long been struggling financially, logging net losses for 15 consecutive quarters and losing its competitiveness against local rivals.

The court protection filing comes after the firm failed to repay 90 billion won to the state-run Korea Development Bank and 15 billion won to Woori Bank. Both loans were due Monday.

This follows a default on loans worth 60 billion won to foreign creditors including JP Morgan and BNP Paribas last week.

SsangYong said it asked the creditors to roll over the loans, but the negotiations were unsuccessful.

With Monday’s court filing, SsangYong received a three-month suspension of its obligation to pay its debts. The company is now aiming to find a new investor in the next three months before the court-led restructuring begins, a company spokesman said.

HAAH Automotive Holdings, a California company that imports vehicles for the US market, is reportedly a possible investor in SsangYong. HAAH declined to comment on the matter.

This is second time that the automotive company has filed for court receivership.

The first was in January 2009, in the aftermath of the global financial crisis.

By Jo He-rim (herim@heraldcorp.com)