A receiver has been appointed to Greenstar, which operates the massive landfill site at Kilconnell near Ballinasloe with a staff of approximately 15.
Greenstar, which deals with a million tonnes of waste a year, claimed banks have demanded immediate payment of loans.
The firm owes more than €80 million to a consortium of banks that includes Bank of Ireland, Bank, AIB, Barclays and HSBC.
The company has a workforce of 800 across the country in collecting waste from 80,000 households and 12 ,000 businesses
It is part of the NTR group which last month published a report stating its subsidiary Greenstar will close its nationwide landfills over the next three years unless prices improve
However in a statement yesterday (Thursday ) the board of Greenstar said it wanted to express its disappointment at what it called the 'unexpected' move of the appointment of a receiver
The company said it was regrettable that its lenders have chosen to take this action — as the company has not missed any scheduled repayments and is in a strong cash position to continue trading for the foreseeable future
Only last month, the company suggested that it may be forced to close the dump due to an increase of landfill tax and the availability of cheap incineration in Europe.
The Galway landfill site at Kilconnell and was a source of major controversy and objection when it was established in 2005 to serve the Connacht region.
Geoff Bailey, Managing Director of Waste Processing at Greenstar said then while the closure has not been confirmed it is a possibily.He said that should the Kilconnell dump closure go ahead services will be impacted but there will be work for existing employees for the coming years.