B.D.W. Associates, Inc., Debtor v. Busy Beaver Building Centers, Inc., Fagen's, Inc. And Jackel Development Co.

FULLAM, Chief Judge.

Appellants petitioned the Bankruptcy Court to have appellee B.D.W. Associates, Inc. declared bankrupt. B.D.W. contested the petition but, after a hearing, the bankruptcy judge granted relief. The debtor appealed, and the district court reversed, ordering dismissal of the petition on the ground that the petitioning creditors lacked standing to obtain the relief they sought, because their claims establish the existence of a bona fide dispute. The petitioning creditors have timely appealed from the district court’s order.

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Section 303(b)(1) of the Bankruptcy Code, 11 U.S.C. §…