Cleanaway Waste Management on Wednesday announced it had acquired $60 million of SKM Groups' debt with KordaMentha appointed to manage operations, including a site at Derwent Park.

The SKM Group was declared insolvent by the Supreme Court of Victoria on August 2 after an earlier environmental regulator intervention over fire risk concerns at a number of recycling stockpile sites.

Recent moves by neighbouring countries like China and Malaysia to reject material from Australia have had a significant impact on the recycling sector. More than 30 councils across Tasmania's South, Victoria and South Australia had arrangements with the SKM group.

IN OTHER NEWS

"We are doing everything humanly possible to keep the Derwent Park plant operating until a sustainable long-term solution is reached," said Glenorchy Mayor Johnston, spokesperson for the four Hobart metropolitan councils which use the site.

"In the meantime, there is no change to recycling services for householders in southern Tasmania and it is important that all Tasmanians remain committed to recycling."

Former Clarence City Council general manager Andrew Paul met with a KordaMentha representative on Wednesday to explore the options available.

Municipalities in the state's North and North-West use different providers.

In a statement KordaMentha's Mark Korda said the firm would "immediately implement" a three-point plan to get the broader business back to capacity.

This would including assessing the business, including the backlog of recyclable materials stored at its sites, determining the rescue package required and acting on an "appropriate" path forward - which could include a sale process.

While you're with us, you can now sign up to receive breaking news updates and daily headlines direct to your inbox. Sign up here.