A judge has rejected an unusual attempt by junior bondholders of Caesars Entertainment's bankrupt operating unit to disqualify law firm Kirkland & Ellis from leading the casino group's $18 billion chapter 11 restructuring, Reuters reported yesterday. Jones Day, the junior bondholders' law firm, had asked the court to reconsider a May order that allowed the bankrupt unit of Caesars Entertainment Corp. to hire Kirkland’s James Sprayregen. The fresh motion in the contentious bankruptcy case accused Sprayregen of giving misleading court testimony earlier this year regarding pre-bankruptcy work Kirkland handled for Caesars. Jones said that it unearthed new evidence including minutes from a 2014 board meeting. Jones Day's heavily redacted filing did not disclose the meeting minutes. In his denial to consider the motion at a Nov. 18 hearing, Bankruptcy Judge Benjamin Goldgar said Jones Day should have requested court permission before filing such a restricted document. He said they could ask to refile the motion.
