Kirkland & Ellis on Tuesday fought a request by junior bondholders that it be disqualified from parts of casino group Caesars Entertainment's $18 billion bankruptcy case, Reuters reported yesterday. The request to disqualify Kirkland & Ellis was made last month by Jones Day, which represents bitter junior bondholders of the bankrupt unit of Caesars Entertainment Corp. Jones Day asked U.S. Bankruptcy Judge A. Benjamin Goldgar to reconsider at a Nov. 18 hearing his previous decision to allow Caesars to hire Kirkland & Ellis, led by James H.M. Sprayregen, whom they accused of misleading the court during a trial over the firm's retention last spring. In a court filing on Tuesday, Kirkland & Ellis asked the court to reject the motion, saying that the allegations were without merit and that it was time to close this chapter and proceed with the complex task of reorganizing Caesars. Kirkland & Ellis has stated that “Sprayregen testified truthfully, accurately and completely in all respects.” The fresh dispute adds another layer of bickering in the contentious Caesars bankruptcy, which involves the biggest U.S. private-equity and hedge fund firms.
