The race to take over cash-strapped budget airliner Eastar Jet has been narrowed to two competitors, pitting a consortium led by underwear maker Ssang Bang Wool to a mid-sized building contractor SJ. 

According to industry sources on Monday, the consortium consisting of Kanglim, a local equipment maker under Ssang Bang Wool, and entertainment company IOK is the sole bidder for the open auction to acquire Eastar Jet before the deadline to submit bids earlier in the day. 

Around 10 other business groups had shown interest in buying Eastar, including chicken-processing company Harim Holdings Corp, and private equity funds, although they did not submit bids, the sources said. 

Last month, SJ was chosen as a preliminary preferred investor in the “stalking horse bid” process, in 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, facing the growing prospect of liquidation as the search dragged on. The airliner applied for a court receivership in January and the Seoul Bankruptcy Court approved it the following month.