Action Should Have Been Dismissed for Failure to Comply With Indenture's No Action Clause

On January 16, 2018, the First Department issued a decision in Rimrock High Income Plus (Master) Fund, Ltd. v. Avanti Communications Group PLC, 2018 NY Slip Op. 00257, holding that an action should have been dismissed for failure to comply with an indenture's no action clause, explaining:

Plaintiffs, holders of certain notes, claim that defendants breached an indenture issued by defendant Avanti Communications Group PLC. The indenture contains a "no action" clause, which provides that no noteholder may pursue any remedy with respect to the indenture or notes unless certain specified conditions are met.

Plaintiffs failed to comply with the no action clause, and thus lack standing to pursue their claims.

(Internal citations omitted).