SKM to be wound up and 280,000 tonnes of recycling could end up in landfill

Firm handling half of Victoria's recycling hoped buyer's $40m injection would save it but 'funds have not been received'

The supreme court of Victoria has ordered recycling company SKM to be wound up, as tens of thousands of tonnes of recycling more than previously disclosed may be headed for landfill.

SKM, which is owned by Melbourne's Italiano family and handles about half of Victoria's recycling, had staked its hopes on a buyer who was willing to rescue the company with a $40m injection. But a lawyer representing SKM, Reegan Grayson Morison, told the court on Friday that the "funds had not been received as hoped by the company" and SKM was not in a position to oppose the wind-up.