IN RE KERSHAW GOLD COMPANY, INC., Case No. 96-31828 (Bankr. W.D.N.C., Nov. 5, 1996).(Hodges) - The court dismissed this Chapter 11 case due to continuing loss to or diminution of the estate and absence of a reasonable likelihood of rehabilitation pursuant to 11 U.S.C. § 1112(b)(1). The court also found that the evidence established the inability of the debtors to effectuate a plan within the meaning of 11 U.S.C. § 1112(b)(2). Finally, the court held that dismissal was warranted pursuant to the dictates of Carolin Corp. v. Miller, 886 F.2d 693 (4th Cir. 1989).

FORTESCUE V. KING (IN RE FORTESCUE), Civil No. 1:93 CV 161 (W.D.N.C., Sept. 6, 1994) - Section 1112(b) authorizes a bankruptcy court to convert a case filed under Chapter 11 to a Chapter 7 proceeding sua sponte, and the bankruptcy court had authority under 11 U.S.C. 1142(b) to order the debtor to execute warranty deeds, but the court's order directing the use of escrowed funds for preparation of property for auction sale constituted an unauthorized modification of the debtor' plan of reorganization.

IN RE ANCHELE ASSOCIATES, Case No. 93-30371 (Bankr. W.D.N.C., July 2, 1993)(J. Hodges) - The combination of objective futility of reorganization and subjective bad faith of the debtor was sufficient grounds for dismissal of a Chapter 11 petition pursuant to 11 U.S.C. 1112(b)(3) where the debtor partnership was formed on the eve of the bankruptcy filing in order to provide an alternative forum for the adjudication of a two-party dispute.

IN RE KUMAR, Case No. C-B-90-31564 (Bankr. W.D.N.C., Jan. 4, 1991)(J. Hodges) - A Chapter 11 case may be dismissed upon a finding of 1) objective futility of reorganization, and 2) subjective bad faith. Bad faith is not necessarily a filing motivated by dishonesty or malice, only one that is not motivated by a purpose consistent with the Bankruptcy Code. The court also noted that an eve-of-foreclosure filing is not bad faith per se. The court also noted that inability to effectuate a plan and prejudice to creditors via unreasonable delay offer additional grounds for dismissal under 11 U.S.C. 1112(b).

IN RE NANTAHALA VILLAGE, INC., Case No. B-B-90-20449 (Bankr. W.D.N.C., Oct. 19, 1990)(J. Hodges) - Although the facts merited dismissal of the case under the two-pronged test set down in Carolin Corp. v. Miller, 886 F.2d 693 (4th Cir. 1989), the court did not dismiss the case, but it did order the sale of assets and grant relief from stay in order to minimize further delay to creditors.