Cash-strapped budget airliner Eastar Jet has found a potential buyer three months after it entered a court-led bailout program. 

According to the local airline industry on Thursday, Eastar is scheduled to sign a contract with an unidentified preliminary preferred bidder this week and seek approval for the preliminary deal from the Seoul Bankruptcy Court.  

The contract is a stalking-horse deal, under which the airliner can choose between the preliminary preferred investor and the winning bidder from an auction. 

Eastar has been searching for a new investor since 2019 due to financial problems, but faced a growing prospect of liquidation as the search dragged on. Jeju Air previously considered the purchase of its rival budget carrier but withdrew acquisition plans last July citing uncertainties in the deal. 

Eastar applied for a court receivership in January and the Seoul Bankruptcy Court approved it the following month.