Casino operator Caesars Entertainment has asked a bankruptcy court to appoint a mediator to resolve creditor objections to the restructuring of Caesars’ main unit.
On Wednesday, Caesars filed a motion with the Illinois court handling the bankruptcy of its main unit, Caesars Entertainment Operating Co (CEOC), seeking the appointment of a neutral third party the company hopes will help bridge the gap between the rival factions.
Caesars’ filing suggested the mere promise/threat of mediation would “incentivize the parties to reach a global compromise based on the current ongoing negotiations.”
Caesars put CEOC into bankruptcy in January 2015 while suggesting a restructuring that would shave around $10b off CEOC’s $18.4b debt. But junior creditors, who stand to bear the brunt of this debt haircut, have rejected the plan as unfair.