The Islamic College of South Australia has just $1.30 left in the bank and a $200,000 debt, but its new principal will make a last-ditch attempt to save the Adelaide school from closure.

Kadir Emniyet has been in the role for five days and says the school at West Croydon has three bank accounts — one with 75 cents, another with 55 cents and a third overdrawn by $200,000.

"We don't have cash in our accounts to pay off our debts. Financially we can't continue beyond Friday," he said.

Parents have removed about 100 students since the Federal Government announced it would cut about $4 million in funding because the school was failing to meet conditions required by the Education and Training Department.

The school said it would lodge an appeal against the federal funding withdrawal.

The new principal held an urgent meeting with the parents of the 550 remaining students last Saturday night, and urged that they pay their fees promptly to help keep the college from being declared insolvent.

He said $25,000 came in on Monday and he wanted an urgent meeting with the South Australian Education Minister to discuss state funding options, with hopes of getting $600,000.

"The cause of this problem is the state funding that is not being released," Mr Emniyet said.

"We have legal representation, we have a team of 12 people on the task, and we're very hopeful that we will satisfy commonwealth and state governments.

"I strongly believe that these students and 60 staff, and the families, shouldn't be punished because some chairman or people on the board have personality clashes, or can't get along or have mismanaged the finances of the school."

Year 12 students a priority

Federal funding will remain until the end of the first term, but the school is pleading for backing until the end of the year.

"The Year 12 students' parents are really concerned," Mr Emniyet said.

"I would plead with the minister and even our Prime Minister to allow the school to continue until the end of the year.

"Let's graduate these students and have a soft landing … at the end of the year, when everyone will have an opportunity to look for a new school, apply for new jobs."

South Australian Education Minister Susan Close said the Islamic college had already been notified in writing there would be no more funding, but in response to the latest email, she had agreed to meet board representatives.

She said recent leadership and governance instability, and failure to comply with funding conditions, had forced the State Government to remove its funding.

She indicated previously the State Government was undertaking its own investigation into the college's conduct, but could not legally fund any school once federal money had been revoked.

Ms Close said the state remained prepared to support students in transition to other schools.