InDaily InDaily

Support independent Journalism Donate Subscribe
Support independent journalism

SKM recycling collapses with $100m debt

Business

An Australian recycling giant with two transfer stations in Adelaide has collapsed with debts worth $100 million.

Print article

Receivers have been appointed to most of the SKM Group, which processes recycling from councils in Victoria, South Australia and Tasmania.

It employs about 170 permanent staff across the country.

A representative for receivers KordaMentha told InDaily the group has two waste stockpiling transfer stations, one in Wingfield and another in Lonsdale, staffed by two employees here.

Cleanaway Waste Management is owed more than $60 million as a secured creditor, while the total amount outstanding to creditors and employees is estimated to be $100 million.

But receivers KordaMentha want to get the business going again.

“There are now solid prospects of getting the business back on track with new owners and getting rid of crippling debt,” the spokesperson told InDaily.

In a statement this morning, KordaMentha partner Mark Korda said: “We will be aiming to get the business back to capacity to help ease Victoria’s waste crisis.”

“This must be done within our statutory obligations to get the best value from the business while repaying the secured creditor,” he said.

China’s decision to stop accepting overseas waste was the first domino in a series that ended up with SKM collapsing and Australia’s recycling piling up with no one to process it.

SKM was ordered to stop taking recycling after a number of fires at its Melbourne facilities, but the company was also unable to send the material overseas.

Warehouses full of unprocessed rubbish are now filling up in Victoria, while other recycling is being sent straight to landfill.

The receivership appointment excludes the SKM’s glass recovery business Glass Recovery Services, which has glass processing facilities in Penrith and Melbourne, but has also been banned from taking waste at its Melbourne site.

Korda said with the interim financial support and industry knowledge of Cleanaway as the secured creditor, the receivers will immediately start sorting through what can be done.

That includes putting the operations on maintenance during an immediate assessment of the business, including the backlog of recyclable materials stored at each site.

They will also look at how to restructure the business and look at a potential sale.

– with AAP

Help our journalists uncover the facts

In times like these InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to donate to InDaily.

Donate here
Powered by PressPatron

More Business stories

Loading next article