Opinion ID: 782085
Heading Depth: 3
Heading Rank: 4

Heading: The Six Additional Petitioning Creditors

Text: 43 The six additional creditors who sought to join the petition held secured claims in the form of mechanic's liens against the hotel. The Bankruptcy Court concluded that the six were ineligible to join as petitioning creditors under 11 U.S.C. § 303(c) because none held unsecured claims. Section 303(c) provides: 44 After the filing of a petition under this section but before the case is dismissed or relief is ordered, a creditor holding an unsecured claim that is not contingent, other than a creditor filing under subsection (b) of this section, may join in the petition with the same effect as if such joining creditor were a petitioning creditor under subsection (b) of this section. 45 The statute plainly requires that joining creditors hold unsecured claims. As the District Court noted, while several of these creditors may have indicated a willingness to waive some or all of their security should Key or Mesta be found to be ineligible as petitioning creditors, none had actually done so by the time the Bankruptcy Court resolved BDC's motion, and § 303(c) requires that petitioning creditors join before the case is dismissed or relief is ordered. 11 U.S.C. 303(c). Accordingly, we conclude that the Bankruptcy Court correctly held that these additional creditors were ineligible, and it properly dismissed the petition.