U.S. bankruptcy lawyer faces fresh creditor attack over Caesars

By Tracy Rucinski and Tom Hals, Reuters

Junior creditors of Caesars Entertainment launched a fresh attack against a top U.S. restructuring attorney, alleging that James Sprayregen of Kirkland & Ellis misled a judge and asking that the law firm be disqualified from parts of the casino group’s bankruptcy case.

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 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.

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