Cleanaway Waste Management has acquired the senior secured debt in the SKM Recycling Group from the Commonwealth Bank of Australia, the largest lender to SKM, for approximately $60 million.
According to a Cleanaway statement, the debt is secured against all assets of SKM, with the exception of its Glass Recovery Services business.
“This includes the property, plant and equipment that form part of a network of five recycling sites, including three material recovery facilities and a transfer station in Victoria and a material recovery facility in Tasmania,” the statement reads.
“The site in Laverton Victoria includes an advanced plastic sorting facility, which separates plastics from material recovery facilities into clean, individual polymer grades for sale or input into a pelletising facility.”
Following the debt acquisition, Cleanaway appointed Mark Korda and Bryan Webster of KordaMentha receivers and managers for the entire SKM Recycling group, excluding its Glass Recovery Services entities.
“KordaMentha will immediately implement a three-point plan, with the aim to get the business back to capacity to help ease Victoria’s waste crisis,” the statement reads.
“The rescue and restructure package may include a sale of all or part of the assets. If a sale process is undertaken by the receivers, Cleanaway intends to participate in the process, and will undertake a thorough due diligence review of the business.”
Cleanaway CEO and Managing Director Vik Bansal said the acquisition would allow Cleanaway to work with the receivers to examine viable options for SKM.
“If a sale process is undertaken, and if we are successful in purchasing any assets, we will return the assets to a sustainable footing,” Mr Bansal said.
“It will also present us with an opportunity to add to our network of prized infrastructure assets as part of our Footprint 2025 strategy.”