SAA is again in the line for liquidation following the failure by government to secure the R10.1bn required to fund the business plan by yesterday's deadline.

BusinessLIVE reports that the business rescue practitioners warned last week that if the funding was not received by 17 September, they would have no choice but to call a meeting of creditors to review the business plan.

A creditors meeting has been scheduled for 11am today to 'engage with affected persons on this issue and the proposed future of the company taking into account all relevant factors', business rescue practitioners Siviwe Dongwana and Les Matuson said in a letter to affected parties posted on their website yesterday.

They said they would provide an 'update on the status of the financial position of SAA and the circumstances presently prevailing'.

SAA has been in business rescue since 5 December. The business rescue plan was approved by creditors in mid-July but required R10.1bn to settle outstanding obligations and restart operations.

The Department of Public Enterprises and the Treasury gave business rescue practitioners an undertaking 'to mobilise' the necessary funding from sources other than the fiscus.

The department has tried to attract an equity partner and arrange finance from other quarters, engaging Rand Merchant Bank as transaction advisers.

It is understood that domestic banks that had lent to SAA previously had declined to do so this time around.

Full BusinessLIVE report