Victorian waste giant SKM Recycling declared insolvent, told to stop operations
Victorian waste giant SKM Recycling has been ordered to be “wound up” after it failed to meet a deadline to pay its creditors. It comes after the business was plagued by a series of controversies.
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Controversial waste giant SKM has been ordered to cease operating.
Supreme Court Judicial Registrar Julian Hetyey today granted an application to wind up the company, declaring it insolvent after it failed to meet the deadline to pay its creditors.
“To protect the interest of creditors, SKM should be wound up without further delay,” Judicial Registrar Hetyey said.
He made the ruling after the court heard further supporting creditors had come forward, taking the total to 15, to join Tasman Logistics Services in pursuing the waste giant for debts owed.
Tasman launched the Supreme Court action to wind up SKM on June 12, saying the company owed it $3.35 million for logistics, freight and storage services.
Judicial Registrar Hetyey said the 15 supporting creditors claim SKM owed them a further $2.2 million.
His decision comes after he last week gave SKM until today to settle its debts and provide a clearer picture of its financial state.
The business had failed to do this, he said.
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“It’s clear the defendant cannot raise the funds to pay its significant debts … and it is plainly insolvent,” he said.
Reegan Morison, for SKM, conceded the company had not been able to pay up as it had hoped.
“On that basis, the defendant is not in a position to oppose the plaintiff’s application,” Ms Morison said.
“Obviously the defendant would like to keep trying but there is no proper basis to seek an adjournment.”
Judicial Registrar Hetyey appointed a liquidator and ordered SKM also pay the legal costs of Tasman and the supporting creditors.
Among the other companies owed money by SKM are Kennards Hire, ANL Container Hire and Sales, Caffyn Plumbing, Silverback Container Management, TRG Transport, Roadsigns Aust., and Komatsu Forklift Australia.
It is the second financial blow for SKM in 24 hours with the Supreme Court yesterday ordering it pay $1.2 million in compensation following a class action over the toxic blaze, which burnt for 11 days, at its Coolaroo recycling plant in 2017.
The money will be divided among 210 individuals and businesses who were affected by the fire — many being forced to evacuate their homes.