Court of Appeals for the Ninth Circuit September 28, 1998, 96-56508 (In Re: Seko Investment, Inc., a Nevada Corporation, Debtor. Chicago Title Insurance Company v. Seko Investment, Inc.)

*1007

KOZINSKI, Circuit Judge:

We must decide whether section 303(b) of the Bankruptcy Code strips a creditor of standing to thrust a debtor into involuntary bankruptcy if the. debtor asserts a counterclaim against the creditor.

Background

Seko, the accused bankrupt here, borrowed $750,000 from two lenders in 1986, pledging real estate as security.