Troubled recycler SKM gets week-long reprieve
Ten companies are chasing controversial waste giant SKM in Victoria’s Supreme Court over a multimillion-dollar debt, as it emerged the recycler faces more action interstate.
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Controversial waste giant SKM has been given a week reprieve to fund paying its growing debts as it has been revealed they are facing further court action interstate.
Tasman Logistics Services was joined by nine other companies in Victoria’s Supreme Court today to pursue SKM for millions of dollars of debts owed. They each pushed for Judicial Registrar Julian Hetyey to declare the company insolvent so they could be paid.
But Judicial Registrar Hetyey said the immediate winding up of the company would be of no public interest, impacting on SKM's 300 employees.
He said it would also have "significant" social and environmental impacts, including the potential for hundreds and thousands of tonnes of waste to end up in landfill.
Judicial Registrar Hetyey gave SKM until Friday next week to seal a deal it says it is currently negotiating with a purchaser.
“By next Friday everyone will have a better idea if this deal is going to go through or not,” he said.
No details of who the potential buyer was were aired in court.
His decision came after Michael Gronow, QC, for SKM, told the court that the creditors would “likely get zero” dollars if the company was wound up today as it had no assets or property.
Mr Gronow said $13.5 million is expected to be available by July 26 to pay the creditors.
The court also heard that SKM is facing a further winding up application from creditors in Queensland’s Supreme Court tomorrow.
And on July 18, another winding up application was lodged in the Queensland Supreme Court by creditors against Glass Recovery Services, an offshoot company owned by the same family as SKM.
The court heard Tasman Logistics Services claims it is owed $3.36 million for logistics, freight and storage services since May last year. The hearing comes in the same week Environment Minister Lily D’Ambrosio shut the door on a taxpayer-funded bailout for the troubled recycling giant.
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“Our government is not in the (recycling) business and will not be bailing out a company that has shown disregard to community safety and time and time again keeps flouting the law,” she said.
Ms D’Ambrosio called SKM a “rogue operator” and insisted the government was working on a long-term plan for recycling.
More to come