Who saw this one coming?
BloombergBusiness reports as follows about yesterday’s hearing in Chicago on Caesars Entertainment’s Motion to appoint a mediator:
Mediation is a great idea that is months overdue, [Bankruptcy Judge] Goldgar said. But last month, the local rules that gave federal judges power to order mediation in Northern Illinois were revoked. And there is no other legal authority to justify ordering everybody to sit down and negotiate, Goldgar said.
Seriously?! A Bankruptcy Court revokes its own local rules on ordering mediation? Now, that’s a new twist. Would love to know the back-story on that.
Yet, the Bankruptcy Judge also says this in the same hearing:
“You don’t need my permission,” Goldgard said Wednesday in Chicago. “Just click your heels together three times and say, ‘There is no place like mediation.’”
OK . . . can anyone from Chicago enlighten us all on what is going on?
Without court-ordered mediation, creditors who feel left out of the company’s current reorganization proposal will be free to refuse to negotiate. So far, on-again, off-again talks have failed to resolve the most contentious disputes in the bankruptcy.
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