Pactiv initially fought back, arguing that the agreement contained contradictory terms about repayment obligations. The company contended that some clauses suggested full reimbursement, while others implied a partial repayment based on the time remaining in the agreement. Despite these arguments, the court rejected Pactiv’s motion to dismiss last October, setting the stage for the settlement.
A Corporate Giant’s Next Move
The timing of Pactiv’s legal retreat coincides with its impending $6.7 billion merger with packaging manufacturer Novolex, expected to close in the coming months. Novolex first announced plans to acquire Pactiv Evergreen in December, offering $18 per share in an all-cash deal.
“We are pleased to have resolved all outstanding matters related to the closure and sale of our former Canton mill site,” Pactiv said in a statement, thanking employees for their contributions and expressing hope for the town’s future.
What’s Next for Canton?
For Canton and Haywood County, the settlement injects millions back into the community at a crucial time. The town, once reliant on the mill’s economic footprint, now faces the challenge of rebuilding its local economy. The agreement also shields the region from future legal battles with Pactiv, allowing leaders to focus on recovery rather than drawn-out court fights.
