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"was busy preparing" is correct and usable in written English.
You can use it when describing an action someone was doing in the past. For example: "John was busy preparing for his presentation when his boss stopped by."
Exact(40)
HIGH ROLLERS -- When it wasn't exchanging its historic credibility for Mr. Armani's cash or negotiating with City Hall, the Guggenheim was busy preparing an Internet business and a branch in Las Vegas with its new Odd Couple partner, the Hermitage.
On Thursday Gamez was busy preparing for Friday's opening ceremony.
Now he was busy preparing for its sendoff.
At the same time, he was busy preparing a major attack against Urartu.
He was busy preparing for moments like the one coming up Sunday.
Nearby, Dr. Edward Lee, a virologist, was busy preparing an agent to test for SARS.
Similar(20)
"In addition to our continued efforts to strengthen our business, we are busy preparing for integration with Verizon," CEO Marissa Mayer said in a statement.
Electricians were busy preparing sound systems.
Keegan and Manford are busy preparing.
Today Green is busy preparing for the N.B.A. season.
Both musicians are busy preparing new albums for release this year.
More suggestions(3)
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com