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.
KordaMentha has secured a $10 million loan from the Victorian Government to help clean-up SKM sites and resume waste processing.
KordaMentha were appointed SKM Recycling’s receiver and manager earlier in August, following reports the company owed $100 million to multiple stakeholders.
Environment Minister Lily D’Ambrosio said the loan would help clear waste stockpiles and fund the essential maintenance work required to get SKM’s plants back up and running, while meeting strict environmental and safety standards.
“The Laverton site will be the first to return to operation, with stockpile clearing to begin within the week, and some processing expected to start within five weeks,” Ms D’Ambrosio said.
“This loan is the fastest way of getting recyclable materials sent to processing sites instead of landfill.”
Ms D’Ambrosio said the state government is also in the process of overhauling kerbside recycling.
“The state government is working in partnership with local government and industry on a major overhaul of kerbside collection, which will seek innovative and cost-effective designs that could include additional household bins to reduce waste contamination,” Ms D’Ambrosio said.
“Negotiating new kerbside collection services across councils will send a strong signal to industry, trigger a change to community behaviour and reduce waste and contamination.”
Ms D’Ambrosio said following consultation, an EOI will be released to design the new kerbside collection service, expected to start in 2021.
The announcement comes on top of a $6.6 million financial relief package to councils directly affected by the closure of SKM, which includes a rebate to cover the cost of the landfill levy.