From Staff Reports

CANTON — Pactiv Evergreen is suing the potential purchaser of its vacant Canton paper mill property, “trying to force the sale to completion and saying the purchase agreement remains legally binding,” according a story on the website www.GlobalPaperMoney.com.

“That purchaser, E.J. Spirtas Group and Two Banks Development, backed away from closing the sale on the Canton site immediately following record flooding by Hurricane Helene (by then, downgraded to a tropical storm) on Sept. 27,” the website stated.

“Now Pactiv Evergreen has turned to the courts to ensure the terms of the purchase agreement are followed.”

On Oct. 4, the complaint was filed in Delaware against Two Banks Development, LLC and E.J. Spirtas Group, LLC.

“Two Banks is a corporation formed by Spirtas owner Eric Spirtas as part of the purchase and development of the mill property,” www.GlobalPaperMoney.com stated.

“Pactiv Evergreen also operates under the name Blue Ridge Paper Products, the company it purchased that was the former owner of the Canton mill.”

As for the lawsuit, Pactiv Evergreen wrote:

 “Spirtas first notified Pactiv Evergreen on Sept. 26 that they refused to close without major changes to the fully negotiated and signed agreement.

“We are pursuing all legal avenues to enforce our rights to ensure Spirtas fulfills their obligations to complete this transaction.”

To that end, the website stated, “By Sept. 26, in Haywood County, water levels were rising as Helene was zeroing in on Western North Carolina, with the majority of rain falling through the night. Around midday Friday (Sept. 27), the Pigeon River broke all flood records, engulfing much of Canton and most all of the paper mill property.

“Photos of the mill appear to indicate the September 2024 storm has damaged the property, including the wastewater treatment plant. Almost two weeks after the storm, that treatment plant is not operating properly.

“The legal complaint alleges Two Banks/Spirtas agreed to purchase the Canton Mill site and assets on an ‘as -is, where-is’ basis.

“‘To Blue Ridge’s shock and dismay, just days before the deal was to close, defendants began making a series of evolving and baseless arguments to back out of the contract ...,’ the document states,” the website noted.