The SsangYong Motor plant in Pyeongtaek / Yonhap

SsangYong Motor said Tuesday it awaits a court's approval for its decision to select a local consortium led by chemical-to-steel firm KG Group as the final bidder for the debt-laden carmaker.

SsangYong has applied for the approval from the Bankruptcy Court over the selection, a company spokesman said over the phone.

In May, SsangYong picked the KG consortium as the preliminary bidder for the carmaker in the stalking horse bid, in which the preliminary bidder suggests its price for SsangYong ahead of the auction, and other bidders submit their prices in the auction.

Last week, underwear company Ssangbangwool submitted its bid to compete with the KG consortium to acquire the Korean unit of Indian carmaker Mahindra & Mahindra.

The KG consortium reportedly plans to acquire SsangYong for 950 billion won (about $740 million) that includes operating capital of 600 billion won.

SsangYong aims to sign a deal with the KG consortium in early July, submit its rehabilitation plan to the court in late July and obtain the court's approval for its restructuring plan in late August. (Yonhap)