Dec. 11—CANTON — If Spirtas Worldwide and Two Banks, LLC (the corporation formed by Spirtas to purchase the Canton properties) is successful in its effort to purchase the Canton mill site owned by Pactiv Evergreen, the town has a more certain path forward, particularly when it comes to its wastewater treatment.
As it stands now, Pactiv Evergreen communicated its intention to the N.C. Department of Environmental Quality (DEQ) to stop treating Canton’s municipal wastewater by April 2025 or when the new owner takes over, whichever comes first.
DEQ has not committed to step in, leaving the thorny question of what happens April 1 in the hands of town leaders, who are mum on the subject.
In a recent interview, Eric Spirtas reaffirmed his desire to buy the Canton mill and associated properties. He shared plans he’d made to renovate and operate the wastewater treatment plant, saying it would be a project done cooperatively with town authorities.
“Two Banks was ready and still stands ready to run that plant for the town and with the town,” Spirtas said. “We were ready to do it, with the permits and transfers in line. I’m excited to support Canton with wastewater treatment.”
Part of his plan includes modifying the treatment facility over time.
“My goal is to immediately work to reduce the costs, make it more efficient — more economical to run,” he said.
Spirtas said he had been working diligently with an engineering firm to make sure modifications can be in place quickly.
“We’re going in with eyes wide open and will drive forward as a team,” he said. “There are ways in every industry to operate more efficiently. This is about working hand-in-hand with the town, the agencies and finding a way to make this state of the art. That is the goal.”
An obstacle
For the wastewater treatment plan to move forward, a lawsuit filed by Pactiv Evergreen to force the buyers to honor an “as-is, where-is” clause in the agreement needs to be resolved.
Two Banks/Spirtas Worldwide contends the sale couldn’t happen on schedule because purchasing the insurance that was a condition within the agreement wasn’t possible. That’s because underwriting was suspended in the wake of Tropical Storm Helene.
Instead of allowing the buyer to inspect the property following massive flooding from Helene or provide insurance documents Two Banks said were required in the agreement, Pactiv filed a lawsuit the following day.
In it, Pactiv claimed the agreement was final when it was signed, not on the property closure date, one Spirtas said is open-ended through December.
Two Banks filed a countersuit alleging the seller acted fraudulently and breached the contract by failing to maintain insurance, a subject Pactiv Evergreen has not addressed.
Two Banks also claimed there were unanswered questions about the agreement Pactiv had failed to address, including information from the town of Canton giving notice it would not pay for wastewater treatment until April 2025 when the current agreement with Pactiv ends.
Pactiv alleged the Two Banks countersuit relied on “baseless claims to achieve through litigation what they could not negotiate, and called the litigation a “transparent attempt to rewrite the agreement.”
Though a Delaware court ruled the matter would go to trial, Spirtas is hoping it doesn’t come to that and that ongoing negotiations will be fruitful.
“I’m hoping our discussions will lead to a settlement — a meeting of the minds. That’s not us getting without the giving,” Spirtas said. “I am hopeful the results of the hearing and continued communication will resolve this.”