Failed recycling giant SKM owes $100 million to creditors but Cleanaway, Australia's largest waste disposer, has bought $60 million of that debt as it considers making a bid for its rival.

KordaMentha was on Wednesday appointed as receiver and manager of 12 businesses owned and operated by SKM.

The receiver has vowed to continue running SKM’s recycling operations in Victoria’s crisis-plagued kerbside waste collection system while considering its future, which may include a sale.

SKM processed recycling for more than 30 Victorian councils until it stopped collecting waste at most of its sites about three weeks ago.