Junior creditors of Caesars Entertainment launched a fresh attack against a top U.S. restructuring attorney, alleging that he misled a judge and asking that the law firm be disqualified from parts of the casino group's bankruptcy case, Reuters reported yesterday. Jones Day, the junior bondholders' law firm, asked the court to reconsider a May order that allowed the bankrupt unit of Caesars Entertainment Corp to hire Kirkland, led by James Sprayregen. The dispute between two of the best-known law firms in corporate restructuring adds another layer of feuding to Caesars' $18 billion bankruptcy, which involves the biggest U.S. private equity and hedge fund firms. In a new court filing on Friday, Jones Day revealed evidence from a board meeting of the operating unit that it says shows testimony by Sprayregen at a trial over Kirkland's hiring by Caesars was incomplete and misleading. Kirkland & Ellis denied the allegation and said that it was without merit. Jones Day initially filed a redacted version of the motion last week, but Bankruptcy Judge Benjamin Goldgar in Chicago rejected that for procedural reasons.
