Retired Judge Joseph Farnan Jr, who was appointed to oversee mediation in the Chapter 11 case in February, said in a one-page letter to CEOC lawyers at Kirkland & Ellis that “recent events have convinced me that I am unable to continue the mediation process in accordance with standard mediation procedures I adhere to.”

Judge Farnan appears to be unhappy with comments made by the judge during a trial in late August over CEOC’s request to extend an injunction of non-debtor litigation. At the center of Judge Goldgar’s comments was Judge Farnan’s latest statement, issued in late August, on the status of the mediation. The statement indicated that CEOC and its non-debtor parent could potentially reach a successful resolution to their ongoing fight with second lien noteholders surrounding a plan.