South African Airways (SA, Johannesburg O.R. Tambo) has issued a Request For Proposals (RFP) to local financial institutions for ZAR16 billion (USD1.1 billion) worth of rand-denominated secured and unsecured long term funding.

A tender document, published by The Sunday Times, says the funds will be used to shore up the carrier's working and capital expenditure and to help manage outstanding debt. Proposals involving a three- to fifteen-year tenure are due in by September 16. SAA wants to start drawing funds within two weeks of signing the loan agreement.

The announcement comes after SAA last week denied calls by the South African opposition to have the state-owned carrier enter business rescue, the local equivalent of US Chapter 11 bankruptcy, citing its precarious financial state.

"SAA does not need to be placed under business rescue as the airline is able to and continues to pay its debts as and when they become due and payable," it said. "The airline has neither defaulted nor been unable to meet its obligations to service its debts – a key determining factor to justify placing a company under business rescue. Those advocating for business rescue are making an absurd misdiagnosis."

SAA has been unable to finalize its 2014/15 financial statements as a going concern after the South African Treasury tied the disbursement of ZAR4 billion (USD284 million) in critical funding to the airline's leadership renewal.

Earlier this year, Finance Minister Pravin Gordhan made it clear that no more funds would be allocated the technically-bankrupt carrier until its perennial leadership woes have been fully addressed.

But, according to local media, Gordhan's unwillingness to retain chairwoman Duduzile Myeni, a close consort of President Jacob Zuma, as part of any future board has led to serious strain between himself and some elements in the African National Congress hierarchy.

As such, Gordhan is now under investigation by the South African police anti-corruption taskforce, the Hawks, for alleged misdealings during his time as head of the South African Revenue Service (SARS).

Last week, Gordhan announced that SAA's leadership woes would be resolved "soon" with an announcement expected Wednesday evening. None was ever made.