In the Matter of Allen University, an Educational Corporation Chartered by the State of South Carolina, Debtor

WIDENER, Circuit Judge:

On May 21, 1973, creditors of Allen University filed in the district court a petition under 11 U.S.C. § 526 asking that Allen University be reorganized under the provisions of Chapter X of the Bankruptcy Act, 11 U.S.C. §§ 501-676. The district court dismissed the petition on the basis that, since Allen was not a “moneyed, business, or commercial corporation” within the intendment of 11 U.S.C. § 22(b), an action could not be maintained against it for involuntary reorganization under Chapter X.

In this appeal, petitioners contest both the district court’s holding that an…