Skippy Bins, a Canberra-owned company offering a waste collection and processing service, is struggling with cash flow problems and significant tax debts, forcing the Tax Office to apply to wind it up.

The company is now in voluntary administration and trying to find a way to keep itself afloat.

Its West Belconnen waste processing depot lies in a state of abandonment, after being reclaimed by the ACT government early last month.

The government is now dealing with a mountain of refuse, and says it will chase the costs of any clean-up from the company.

The ACT is claiming $5.89 million in costs from the business, according to documents lodged with the Australian Securities and Investments Commission.

Liquidator Steven Gladman, of Hall Chadwick, said the majority of the ACT's claim was for clean-up costs.

The government is assessing the piles of rubbish, which include building waste, for hazardous materials. An engineering report has also been commissioned.

The depot is fenced off and the ACT Property Group has changed the locks and restricted access to protect the public.

Skippy Bins director Michael Froome declined to comment about the situation.

But it is understood the company, which has operated for 12 years, is confident it can survive and avoid taxpayers forking out for the clean-up.

Financial documents show MNG Investments, which trades as Skippy Bins, was being pursued for $619,000 by the ATO, and had failed to lodge all of its returns.

It has a long list of other creditors, and more than 50 individuals and organisations were listed at a creditors meeting last week.

Mr Gladman said the other debts included unpaid tip fees owed to the ACT Government, and general trade creditors, such as Telstra, the company's suppliers, equipment repairers, fuel suppliers, and accountants.

The company's core business is providing skip bins to residential and commercial clients in Canberra, Queanbeyan and Murrumbateman for waste. The bins are then picked up and the rubbish processed at the depot near the north-western ACT/NSW border.

The waste is sorted, and recyclable material – including metal and aluminium, timber and wood, green waste, and plastic – extracted.

Concrete and bricks are also crushed and converted into recycled concrete.

ACT Property Group director Daniel Bailey said Skippy Bins is currently trying to trade its way out of debt.

"If the operator can trade his way out of debt with the assistance of the liquidator there will be no public impact," Mr Bailey said.

The voluntary administration process is typically designed to give companies like Skippy Bins breathing room from its creditors to try and save as much of the business as possible.

Mr Gladman said the voluntary administration period would last about a month, giving the company time to come up with a plan to save itself.

If that plan is better for creditors than liquidation, the liquidator can decide to keep the company alive.

The next meeting of creditors is due in about two weeks.

Signs are up around the site advising that the property has been reclaimed by the ACT Property Group.