Financial impact of SKM's liquidation

Thursday, 5 September 2019

The following answers can be attributed to Director City Services Guy Wilson-Browne

Can you confirm the City was owed $1.4 million by SKM Corporate when it went into liquidation? Is a breakdown of these debts available?

A creditors’ report indicates that SKM Corporate owes us $1.405 million. The City does not have a breakdown of this figure.

Will Council pursue SKM’s receivers for this money? Will Council also pursue the receivers to cover the $650,000 spent in sending kerbside recycling to landfill so far this year?

The City believes it is entitled to seek reimbursement for any additional costs we have borne due to the disruption to contracted services. This would include the costs associated with sending recycled waste to landfill.

We are monitoring the progress of the company’s liquidation, and the review by the administrators and receivers of the affairs of the wider SKM Group, before considering our options.

What effect are these debts and extra spending expected to have on next year’s budget? Is there a possibility the City’s underlying result will be pushed into deficit as a result of this waste crisis?

At this stage of the process, it is too early to gauge the ultimate impacts on our Budget.

Page last updated: Thursday, 5 September 2019