Hollywood Casino Shreveport asks court to appoint mediator

New York, Nov. 12 - Hollywood Casino Shreveport asked the U.S. Bankruptcy Court for the Western District of Louisiana to appoint a mediator in its Chapter 11 case to resolve the dispute over naming an examiner.

The company proposed that David Rubin be named to the position. Hollywood Casino Shreveport and the creditors had previously proposed that Rubin be named examiner.

However, the U.S. trustee in the case had put forward a different person, Louis Phillips, a partner in the law firm of Gordon, Arata, McCollam, Duplantis & Eagan LLP.

The trustee's choice was rejected by the bankruptcy court since Phillips was not one of the two choices for the position that all of the parties agreed on at hearings held on Oct. 29 and 30. The trustee was not at the hearing.

In its filing proposing a mediator, Hollywood Casino Shreveport said that the Chapter 11 case is partly a result of an auction of the company that the losing bidder thought was unfair. The losing bidder, with other creditors, started involuntary Chapter 11 proceedings and asked for an examiner to be named and the auction restarted.

Subsequently, the parties involved agreed to an examiner to look in to the sale process.

Hollywood Casino Shreveport observed it was "remarkable" the different sides agreed on Rubin given the "acrimony" in the case.

The company added that it and other parties involved in the case are concerned that there might be further delays if the trustee continues to propose Phillips which could result in a decline in the value of its assets.

Naming Rubin as mediator would achieve the goals of the company and the creditors in a "speedy, economic and efficient manner," Hollywood Casino Shreveport said in its filing with the court Friday.

An involuntary Chapter 11 petition was filed for Hollywood Casino Shreveport on Sept. 10. Its Chapter 11 case number is 04-13259.

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