Page 11 - Packaging News Magazine Sep-Oct 2019

September-October 2019 www.packagingnews.com.au
NEWS
Cleanaway looks to
Mark Korda has been appointed as SKM administrator.
clean up SKM mess
VICTORIA has been thrown a lifeline in its waste crisis after Cleanaway purchased $60m of the debts of collapsed recy- cling firm SKM, giving it effec- tive control of the company.
The ASX-listed waste man- agement giant bought out the Commonwealth Bank’s position as major lender to the controver- sial SKM, which went belly-up in August with an estimated $100m in debt after Asian waste import bans crippled its busi- ness model and fires at its recy- cling stockpiles caused a state government crackdown on ac- cepting new rubbish.
The collapse threw Victoria’s waste management system into disarray, as SKM handled about 60 per cent of the state’s garbage, and it was feared that around 180,000 tonnes of waste could go straight to landfill.
Cleanaway has appointed Mark Korda and Bryan Webster of KordaMentha as receivers. According to Korda, they – with Cleanaway’s support – will get to work seeing what can be done for the stricken SKM.
“We will be aiming to get the business back to capacity to help ease Victoria’s waste cri- sis. This must be done within our statutory obligations to get the best value from the busi- ness while repaying the se- cured creditor. We will also be- gin working immediately with the Victorian Government and regulators to prepare for a path forward,” he said.
The move comes as Prime Minister Scott Morrison has an- nounced a ban on waste exports and pledged $20m to boost Aus- tralia’s recycling industry.
In a post on LinkedIn, in which PM Morrison can be seen reading letters from “passionate kids who highlighted the impor- tance of our recycling and waste management initiatives,” he says, “I'm pleased to let them know that we are banning our waste being shipped overseas and that it will be recycled and reused here in Australia.” ■
PKN, 158 x 245 mm, CC- en-AZ404 07/19
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