Family First’s Bob Day says he may stay on as a senator if new investors manage to save his troubled construction company.

The South Australian politician announced his resignation on October 17 after his company Home Australia went into liquidation.

The party had met on the weekend to work out the succession process, but those plans are now on hold.

In a statement, Senator Day said he would return to Parliament in the next sitting week following investor interest in his business.

“If new investment revives the company, if houses are being completed and trade contractors and others are being paid, then I may continue as a senator,” he said.

“If not, my resignation will proceed and I will devote myself to assisting those affected by the Group’s closure.”

Senator Day said that liquidator McGrathNicol had been assessing offers and would be holding a creditors’ meeting early next month.

Earlier this week, a spokesman for McGrathNicol told the ABC there had been a lot of interest in Home Australia assets.

Senator Day is a shareholder in Home Australia and has made personal guarantees to some of the creditors. It is not known if he has the assets to cover those debts.

If he cannot cover the debts and declares bankruptcy, he will have to step down from politics.

Senator Day said he was “deeply sorry” for the anguish the situation was causing many people.

“I am doing all I can to assist.”

Labor and the Greens have called for Senator Day’s immediate resignation but the government says he is entitled to make his own decisions.

Labor leader Bill Shorten said the prime minister needed to explain how Senator Day could one week declare his position “untenable” and the next be “irreplaceable”.

Under the constitution, anyone who is insolvent or bankrupt cannot sit in parliament.

Senator Day has provided a crucial vote for government legislation and motions since he was first elected in 2013.

– with AAP