Councils in central Victoria are urging residents to continue their usual recycling habits despite recycling operator SKM not accepting anymore recyclable materials.
Macedon Ranges Shire Council and Buloke Shire Council have their recycling collected by Four Seasons Waste who then take the waste to facilities operated by SKM.
SKM announced on Thursday night it would immediately stop accepting recyclable materials with Municipal Association of Victoria president Coral Ross understanding the shutdown to be a "temporary cease".
Macedon Ranges Shire acting director of assets and operations Anne-Louise Lindner said it was business as usual for residents when it came to recycling.
"Our contractor, Four Seasons Waste, will work with council to make alternative arrangements to send the shire's recycling to a different processing facility," she said.
"Council is committed to resource recovery and does not intend to send any of the shire's recycling to landfill."
In a statement, a Buloke Shire Council spokesperson said council is working closely with Four Seasons Waste and MAV and said residents should continue to recycle as normal.
SKM was given a 10-day lifeline in the Supreme Court on Thursday in the hope it can close a deal with a prospective buyer and pay off its debts.
Judicial Registrar Julian Hetyey ruled it would not be in the public interest to wind up the company on Thursday, as this would risk doing significant environmental damage, with large quantities of recyclables likely to be dumped into landfill.
Mr Hetyey also said shutting the company down could put about 300 SKM Corporate employees out of a job.
The matter will return to court on August 2.
Mount Alexander Shire Council said they are not contracted to SKM with Veolia Environmental Services contracted to the area.
The shire's recyclables go to Veolia's materials recovery facility in Echuca which processes paper, cardboard, rigid plastics, metals and glass.
Recycling collected from households within the City of Greater Bendigo is processed by local materials recovery facility JJ Richards who supply a variety of markets in Victoria and NSW.
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