IN RE FEDERATED GROUP, INC.

No. 95-16556.

107 F.3d 730 (1997)

In re FEDERATED GROUP, INC., a Delaware corporation, Debtor. Nathaniel I. GREY; Lana L. Grey; Bernard A. Heerey; Jay Pine; Harlene Pine, Creditors-Appellants, v. FEDERATED GROUP, INC., Debtor-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided February 20, 1997.


Attorney(s) appearing for the Case

Bennett G. Young, LeBoeuf, Lamb, Greene & McRae, San Francisco, CA, for the creditors-appellants.

Adron Beene, San Jose, CA, for the debtor-appellee.

Before: FLETCHER, WIGGINS, and T.G. NELSON, Circuit Judges.


WIGGINS, Circuit Judge:

We must decide whether the joinder of an indenture trustee to an involuntary bankruptcy petition extinguishes the claims of the underlying debenture holders for purposes of satisfying the three petitioning creditor requirement of 11 U.S.C. § 303(b). Because we conclude that it does not, we reverse.

BACKGROUND

The Federated Group, Inc. issued convertible subordinated debentures due in the year 2019. Bank of America is...

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