{"id":39589,"date":"2016-09-12T17:37:08","date_gmt":"2016-09-13T00:37:08","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=39589"},"modified":"2016-10-12T15:26:04","modified_gmt":"2016-10-12T22:26:04","slug":"caesars-bankruptcy-mediator-quits","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-bankruptcy-mediator-quits\/","title":{"rendered":"Caesars Bankruptcy Mediator Quits"},"content":{"rendered":"
\"Joseph
All Dressed Up: Former Joseph J. Farnan Jr. sporting the collegiate robes of Wilmington University where he sits on the Board of Trustees. (Image: photoshelter.com)<\/figcaption><\/figure>\n

<\/i>Caesars\u2019 long-suffering mediator in its chapter 11 bankruptcy case has thrown in the towel.<\/p>\n

The casino giant is currently embroiled in what one of its own lawyers described as the \u201clargest and most complex bankruptcy in a generation\u201d as it seeks to placate junior bondholders while shaving an $18 billion debt-load down to around $10 billion.<\/p>\n

The bondholders, meanwhile, believe they have claims worth as much as $12.6 billion. They also accuse the parent company, Caesars<\/a> Entertainment, of systematically stripping the bankrupt unit, Caesars Entertainment Operating Corp, of its most prized assets for the benefit of its controlling private equity backers.\u00a0 \u00a0<\/span><\/p>\n

It\u2019s no wonder that former federal judge\u00a0Joseph J. Farnan Jr, the man charged with negotiating Caesars\u2019 corner in all this, has had enough.<\/p>\n

But surprisingly, his problem\u00a0isn\u2019t with the negotiation process itself; it\u2019s the judge in the case, Judge\u00a0A. Benjamin Goldgar.<\/p>\n

\u201cI Can\u2019t Continue\u201d<\/b><\/h2>\n

Farnan insisted in his resignation letter that he has \u201ctruly enjoyed working with the various constituencies involved with the effort of reorganizing the companies,\u201d and that he does not wish to \u201cfault or criticize\u201d anyone connected with the case. Nevertheless, \u201crecent events,\u201d he said, \u201chave convinced me that I am unable to continue the mediation process.\u201d<\/p>\n

Farnan appears to have been upset by Judge Goldgar\u2019s assertion that a mediation report he submitted was short on details, despite the necessary confidentiality of such a report.<\/p>\n

\u201cApparently the Court did not find my progress report helpful because I didn\u2019t breach the confidentiality of the mediation and testify in open court or describe the discussions and proposals exchanged, and detail the status of the differences among the parties. I believe the Court either misspoke or doesn\u2019t understand how such disclosures would be viewed by participants and the markets,\u201d he complained.<\/p>\n

\n

\u201cI am convinced that I can\u2019t continue and possibly a new mediator will be able to establish a workable process,\u201d he added.<\/strong><\/p>\n<\/blockquote>\n

Unprecedented Move<\/b><\/h2>\n

The former judge\u2019s decision to wash his hands of the process has startled his colleagues. \u201cFarnan is known to be an evenhanded person,\u201d Temple University law professor Jonathan C. Lipson told the Wall Street Journal this week. \u201cI never heard of a mediator resigning due to statements or conduct by the judge in the case.\u201d<\/p>\n

Goldgar last month refused to renew the shield protecting Caesars Entertainment Operating Corp from the litigation of its junior creditors, lawsuits that could potentially plunge the whole company into bankruptcy<\/a>.<\/p>\n

Despite the lack of a mediator, negotiations are understood to be continuing this week.<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars\u2019 long-suffering mediator in its chapter 11 bankruptcy case has thrown in the towel. The casino giant is currently embroiled in what one of its own lawyers described as the \u201clargest and most complex bankruptcy in a generation\u201d as it seeks to placate junior bondholders while shaving an $18 billion debt-load down to around $10 […]<\/p>\n","protected":false},"author":42,"featured_media":39593,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,13,18],"tags":[],"acf":[],"yoast_head":"\nCaesars Bankruptcy Mediator Quits<\/title>\n<meta name=\"description\" content=\"Caesars bankruptcy mediator, Joseph J. 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