Decision and
Beyond
of typical indentures and how such
clauses restrict an investor’s right to
sue an issuer without first complying
with certain procedural requirements set
forth in the no-action clause. 1 Recently,
the related issue of investor standing to
appear and be heard in a bankruptcy case
has come to the fore, this time in a case
involving commercial mortgage pass-
through certificates. The Innkeepers USA
Trust case, while discussing no-action
clauses, did not rely primarily on a no-
action clause to hold that investors
had no right to participate in the
bankruptcy case. Rather, it was the
structure of the deal that led the
court to deny the investors
standing to be heard.
