Rollex Corp. v. Associated Materials, Inc. (In re Superior Siding & Window, Inc.)

OPINION

NIEMEYER, Circuit Judge:

The question presented is whether the bankruptcy court, when presented with “cause” to grant a motion to dismiss or to convert a Chapter 11 proceeding to a Chapter 7 proceeding under 11 U.S.C. § 1112(b), erred in dismissing the proceeding rather than converting it to a Chapter 7 proceeding. Rejecting the largest creditor’s objection to dismissal, which was based on the fact that dismissal would protect preferences- obtained by the other creditors which might be voided in bankruptcy under 11 U.S.C. § 547, the bankruptcy court in this case ordered dismissal…