The federal judge overseeing Pacific Lumber Co.’s bankruptcy proceeding has ordered the reorganization plan proponents to a conference today to discuss the possibility of court-ordered mediation.

“The court finds that a hearing on the status of negotiations in the plan confirmation process would be beneficial at this point to determine whether the parties should be ordered to mediation,” the order from Judge Richard Schmidt stated.

In the order filed with the court on Monday, Schmidt ordered Marathon Structured Finance Fund, Mendocino Redwood Co., Beal Bank and the Timber Noteholders’ counsel to participate in the hearing.

Beal Bank owner Andy Beal, a Texas billionaire, submitted a bid for $603 million to the Noteholders, whose reorganization plan aims to auction off PALCO’s 210,000 acres of timberlands to recover its approximately $750 million secured by the lands.

Although PALCO attorneys were not specifically ordered to join in the call, no parties with standing in the case are excluded from participating if they want to join, according to the court filing.

The hearing is scheduled for 2 p.m. Central Time in the Corpus Christi, Texas courtroom.

Parties in the bankruptcy case entered into mediation talks late last year at the request of Schmidt, but were unsuccessful in resolving their experts’ varying differences of opinion of how much the company is worth.

The first week of bankruptcy confirmation hearings concluded last week after Marathon and MRC attorneys presented their reorganization plan, which was followed by the Noteholders attorneys.

The hearings are scheduled to resume after a two-week break on April 29 and continue through May 2.

Before concluding the four days of hearings last week, Schmidt reiterated his previous advice to the plan proponents to work together to find a solution to resolve the case.

Frank Bacik, PALCO vice president and general counsel, said on Wednesday that PALCO attorneys are looking forward to putting on their case when the hearings resume April 29 in Texas.

Because it is unusual to have a long break, Bacik said there is attention on the ongoing discussion outside of the courtroom.

“Even if the parties reached a deal, it wouldn’t preclude our presenting our case,” Bacik said.

If ordered into mediation, the proceedings are confidential and not restrained by the courts rules of evidence, which Bacik said could facilitate a speedier deal among the parties.