What is the test for dismissing a bankruptcy case for cause?

federal, United States of America

The following excerpt is from Sunshine Grp. v. City of Dana Point (In re Sunshine Grp.), BAP No. CC-19-1105-GSL, BAP No. CC-19-1106-GSL, BAP No. CC-19-1107-GSL (B.A.P. 9th Cir. 2020):

dismiss a case "for cause," whichever is in the best interests of creditors and the estate, unless the court determines that appointment of a chapter 11 trustee or examiner is in the best interests of the estate. Debtor does not argue on appeal that the bankruptcy court should have converted the case or appointed a trustee or examiner, and therefore, we consider only whether the bankruptcy court erred in finding "cause" to dismiss the case. See Smith v. Marsh, 194 F.3d 1045, 1052 (9th Cir. 1999) ("[O]n appeal, arguments not raised by a party in its opening brief are deemed waived.").

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