Kajon_Nick

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Nicholas F. Kajon

Shareholder

New York  |  Phone: 212.537.0403  |   Fax: 610.371.1223

nfk@stevenslee.com  

Nick is Co-Chair of Stevens & Lee’s Bankruptcy and Financial Restructuring Department and Co-Chair of the Litigation Finance and Alternative Funding Group. He has over 30 years of experience advising clients on financial restructuring, corporate governance and commercial litigation matters. Nick primarily represents debtors, hedge funds and trustees. He also regularly represents lenders, buyers of distressed assets, investors, suppliers, directors and executives. His clients have included companies in industries such as retail, apparel, transportation, energy, manufacturing, technology, telecommunications, hospitality and services. Nick also has significant experience representing plaintiffs and defendants in insolvency related litigation including claims involving preferences, fraudulent transfers, breach of fiduciary duty, wrongful redemption, declaration of illegal dividends, equitable subordination, recharacterization and veil-piercing.

Nick has negotiated a number of multi-million dollar agreements with litigation funders pertaining to both insolvency and other commercial litigation claims, and has extensive contacts in the litigation finance industry. As a result, he and the lawyers in the Litigation Finance and Alternative Funding team can provide an end-to-end solution for clients seeking to assert litigation claims without committing their own capital.

In September 2016, Nick closed a $26.2 million sale to Gerchen Keller Capital, LLC, n/k/a Burford Capital LLC, the largest capital provider in the litigation finance industry, of the right to receive a portion of net recoveries on account of a bankruptcy trustee’s $213 million judgment against The Renco Group, Inc. and Ira L. Rennert, while the judgment was on appeal to the Court of Appeals for the Second Circuit. Nick and his team overcame objections filed by the judgment debtors and certain of the Debtors’ noteholders to both the bidding procedures and the sale itself. Thereafter, Nick and his team were successful in opposing the noteholders’ motion for a stay pending their appeal of the sale order in the District Court for the Southern District of New York. On March 8, 2017, the judgment was affirmed in all respects.

Nick is currently representing various offshore hedge funds in audit malpractice litigation against RSM as successor in interest to McGladrey for claims arising from its failure to detect the Petters Ponzi scheme while serving as auditor to a Petters feeder fund. He is currently defending Legacy Capital Ltd., a Madoff feeder fund, in a fraudulent conveyance case brought by the Madoff trustee. On March 14, 2016, Judge Bernstein issued an opinion granting Nick’s motion to dismiss over $120 million in claims against our client. Nick led the team that represented shipping company B+H Ocean Carriers Ltd. and its subsidiaries in their Chapter 11 case in the Southern District of New York. Nick negotiated a consensual plan with two banks holding mortgages on the company’s ships and the unsecured creditors’ committee, thereby maximizing value for holders of approximately $50 million in debt. Nick led the team that represented a group of investors (who collectively invested over $90 million through U.S. and Cayman feeder funds) in the Chapter 11 case of the New Stream hedge fund group in Delaware, where a consensual plan was confirmed in April 2012 that provided significant recoveries for the firm’s clients. Nick led the team that represented retailers Friedman’s Inc. and Crescent Jewelers in their Chapter 11 case in Delaware, and oversaw an orderly liquidation of assets that resulted in full payment of secured claims and over $20 million paid on account of unsecured claims. Nick represented bond holders and swap counterparties in the Lehman Brothers case. Nick represented the trustees of Alliance Bancorp (prosecuting claims against lenders to Alt-A mortgage banker) and Magnesium Corporation of America (manufacturer that defaulted on $150 million in bonds). Nick represented Community National Bank in the Chapter 11 case of Creative Group Acquisition Co. in Delaware.

Debtor representations have included EAL (Delaware) Inc., an aircraft leasing company with over $500 million in secured debt; Cellular Information Systems, Inc., a public company with over $100 million in bank debt; govWorks, Inc., an e-government dot com company with $60 million in debt that was acquired by First Data Corp.; North American Energy Conservation, Inc., an energy trading company with $70 million in debt; Nathan’s Equity Group, L.P., which controlled Nathan’s Famous, Inc., a restaurant company; and apparel companies such as Biscayne Apparel, Inc. and Masterwear Corporation. His other debtor representations have included companies in the shipping, retail, real estate, service and mining industries.

Nick is currently representing senior lender RB International Finance (USA) LLC (“RBI”) in the Chapter 11 case of Ryckman Creek Resources LLC. Nick represented RBI or its affiliates in the Chapter 11 cases of Lehman Brothers, Lyondell, SemCrude, Lenox Group, Bethlehem Steel and Harnischfeger. He has represented parties to license agreements and other executory contracts such as Ford Motor Company in Livent (U.S.) Inc., NFL Films, Inc. in Vestron, Inc. and Compuware Corporation in AG Systems, Inc. Nick also represented creditors in the Dana, Refco and Enron cases.

Nick’s committee representations have included companies in the technology, biotech, manufacturing and financial services industries. His other creditor representations have included companies in the technology, apparel, retail, manufacturing, transportation, energy, hospitality, financial services and media industries.

Nick was a law clerk to the Honorable Tina L. Brozman, Southern District of New York. In law school, he was Articles Editor for the New York Law School Law Review.

Nick has served as a lecturer on bankruptcy-related topics for the Association for Corporate Growth and the Practicing Law Institute. He regularly writes on issues affecting bankruptcy practice. His articles have been published by the Commercial Law League of America, Bankruptcy Law360, Mondaq and others. He is a past Chair of the Editorial Advisory Board of the Turnaround Management Association’s Journal of Corporate Renewal.

Nick has been recognized as a New York Metro Super Lawyer in 2011, 2013 and 2014 by being selected by his peers as among the top 5 percent of lawyers in the New York City metro area.

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