Bankrupt budget carrier Oasis Hong Kong Airlines missed a deadline for securing a buyer or investor and is now forced to lay off most of its staff, its court-appointed liquidators said on Friday, cooling speculation the firm had been targeted by several major corporations.

Liquidators KPMG told reporters that about 700 people would be fired, including pilots and cabin crew, after receiving no firm investment proposals ahead of a deadline this week.

They added that the situation was not yet clear for laid-off employees. "I don't know if they will get all of their money back. We're working with the labour department and they are assisting the employees, helping them file their claims," said Edward Middleton, KPMG's head of restructuring services.

Rumours swirled that Li Ka-shing's property flagship, Cheung Kong, and Cathay Pacific were interested in the embattled carrier, although they denied the speculation.Other potential suitors mentioned by the media included Hainan Airlines, China's No. 4 carrier.

Oasis, which began flights in October 2006, had accumulated losses of about HKD$1 billion (USD$128 million) during two years of operation.