A Seoul court on Monday approved a local consortium's acquisition of Mahindra & Mahindra-owned SsangYong Motor by Edison Motors for $254 million, paving the way for the financially-troubled carmaker to get back on track.

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The consortium led by electric carmaker Edison Motors signed a final deal with SsangYong to take over the SUV-focused carmaker, according to the two companies.

SsangYong was placed under court receivership in April last year for the second time after undergoing the same process a decade earlier.

Its Indian parent Mahindra & Mahindra Ltd. failed to attract an investor due to the Covid-19 pandemic and its worsening financial status.

Under the final agreement, Edison has agreed to acquire SsangYong for 304.8 billion won ($254 million), and the acquisition money will all be spent to repay some of the carmaker's debt to financial institutions, the two companies said in separate statements.

Edison said it has paid 10 percent of the acquisition money and secured the remaining 274.3 billion won, reports Yonhap news agency.

The electric bus and truck maker is required to submit its rehabilitation plans for SsangYong to the court by March 1.

China-based SAIC Motor Corp acquired a 51 per cent stake in SsangYong in 2004 but relinquished its control of the carmaker in 2009 in the wake of the global financial crisis.

In 2011, Mahindra acquired a 70 per cent stake in SsangYong for 523 billion won and now holds a 74.65 per cent stake in the carmaker.

For the whole of 2021, its vehicle sales fell 22 per cent to 84,106 units from 107,324 a year earlier amid the pandemic and chip shortages.

SsangYong's lineup consists of the Tivoli, Korando, Rexton, and Rexton Sports SUVs.