SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., said Monday its first-quarter net losses narrowed from a year earlier on a base effect.

Net losses narrowed to 86.29 billion won ($76 million) in the January-March quarter from 193.54 billion won in the same period of last year, the company said in a statement.

"In the first quarter of 2020, losses involving tangible assets were reflected, but there was no such one-off factor in the past quarter," it said.

Operating losses also narrowed to 84.73 billion won in the first quarter from 98.63 billion won as companywide cost cuts helped offset weak vehicle sales.

Sales fell 17 percent to 535.83 billion won from 649.19 billion won over the cited period.

SsangYong has been in the court-led debt rescheduling process since April 15, as Mahindra failed to attract an investor amid the prolonged COVID-19 pandemic and worsening financial status.

It is the second time for SsangYong Motor to be under court receivership after undergoing the same process a decade ago.

Court receivership is one step short of bankruptcy in South Korea's legal system. In receivership, the court will decide whether and how to revive the company.

SsangYong Motor filed for court receivership late last year after failing to obtain approval for the rollover of 165 billion won worth of loans from creditors.

Under court receivership, SsangYong Motor's survival depends on whether there will be a new investor to acquire a streamlined SsangYong Motor after debt settlement and other restructuring efforts. (Yonhap)