MEMORANDUM OPINION
This matter comes before the court upon an appeal of an Order of the United States Bankruptcy Court for the Western District of Virginia, Lynchburg Division, Judge William E. Anderson, granting the United States Trustee’s motion to convert the appellant’s Chapter 11 petition into a Chapter 7 petition, pursuant to 11 U.S.C. § 1112, where the appellant had failed to comply with several orders of the bankruptcy court that the appellant effectuate a plan of reorganization. The question before this court is whether the bankruptcy court abused its discretion in so ordering.
I.
On October 6, 1994, the appellant and debtor, Frederick H. Quarles, filed his petition in bankruptcy, pursuant to Chapter 11 of the Bankruptcy Code, 11 U.S.C. §§ 1101, et seq. On March 2, 1995, the appellant filed a Motion to Extend the time for filing his Disclosure Statement until April 5, 1995. The Trustee did not object, and the bankruptcy court granted the motion. On April 5, 1995, the appellant filed another Motion to Extend such time until April 25, 1995, and, again, the Trustee did not object, and the bankruptcy court granted the motion. The appellant failed to file his Disclosure Statement by April 25, 1995.
On May 11, 1995, the Trustee filed a “Motion for a Show Cause Order” requiring the appellant to show cause why his case should not be converted into a case pursuant to Chapter 7 of the Bankruptcy Code. The Trustee claimed as grounds the appellant’s failure to file his Disclosure Statement and a Plan of Reorganization. A hearing on the motion was held on May 22, 1995, and then continued until June 19,1995.
At the June 19,1995 hearing, the appellant advised the bankruptcy court that he had failed to file a Plan of Reorganization because of litigation pending both in federal court and in South Carolina state courts. Nonetheless, the bankruptcy court ordered the appellant to file a Plan of Reorganization by July 17, 1995. On June 20, 1995, the bankruptcy court entered an Order compelling the appellant to Show Cause on July 17, 1995, why the case should not be converted to a petition pursuant to Chapter 7 for the appellant’s failure to file a Plan and a Disclosure Statement. 1 The bankruptcy court subsequently continued the Show Cause hearing to August 21, 1995, and then again to September 13, 1995. On September 18, 1995, the bankruptcy court ruled that unless the appellant voluntarily dismissed the case within ten days, the bankruptcy court would convert the case to a Chapter 7 case.
On September 28, 1995, the appellant moved the bankruptcy court to reconsider the September 18, 1995 Order requiring the *96 appellant to elect either dismissal or conversion. The Trustee objected to the motion for reconsideration. On October 28, 1995, a hearing was held on the appellant’s motion and the Trustee’s motion to convert. On October 26, 1995, the bankruptcy court entered its Order converting the case to one pursuant to Chapter 7. The appellant appeals the October 26,1995 Order.
II.
The district court reviews findings of fact by the bankruptcy court pursuant to a clearly erroneous standard and reviews the conclusions of law
de novo, In re Tudor Assocs., Inc. II,
Title 11, United States Code, Section 1112(b) provides the rules and procedure governing the dismissal and conversion of Chapter 11 cases:
(b) Except as provided in subsection (c) of this section[ 2 ] on request of a party in interest or the United States trustee or bankruptcy administrator, and after notice and a hearing, the court may convert a case under this chapter to a case under chapter 7 of this title or may dismiss a case under this chapter, whichever is in the best interest of creditors and the estate, for cause, including—
(1) continuing loss to or diminution of the estate and absence of a reasonable likelihood or rehabilitation;
(2) inability to effectuate a plan;
(3) unreasonable delay by the debtor that is prejudicial to creditors;
(4) failure to propose a plan under section 1121 of this title within any time fixed by the court....
11 U.S.C. § 1112(b) (1996) (emphasis added). The factors in § 1112(b) are non-exclusive, and a bankruptcy court may consider additional grounds in determining “cause.”
See, e.g., First Jersey Nat’l Bank v. Brown,
The appellant urges this court to conclude that the bankruptcy court erred in converting the case to a Chapter 7 ease because the bankruptcy court failed to consider the detrimental effect of liquidation upon the claims of unsecured creditors. The appellant claims also that outcome of pending litigation favorable to him could likely provide assets which would more than satisfy all creditors, secured and unsecured.
The Trustee rejoins that the bankruptcy court did not clearly abuse its discretion in ordering conversion because the appellant had repeatedly failed to comply with the bankruptcy court’s orders to file a Disclosure Statement and a Plan of Reorganization. Additionally, the Trustee argues that the bankruptcy court was justified in concluding that the appellant did not have a likelihood of success in pending litigation. To be sure, the appellant has received an unfavorable ruling from this court on a related matter which is pending before the United States Court of Appeals for the Fourth Circuit.
This court agrees with the Trustee and, accordingly, will affirm the decision of the bankruptcy court. The court cannot conclude that the bankruptcy judge committed
*97
clear error in converting the appellant’s Chapter 11 case into a Chapter 7 case. First, the appellant repeatedly failed to file a Plan of Reorganization, which failure, standing alone, could justify a finding of “cause.” In
In re Funk,
Secondly, the appellant has repeatedly failed to file a Disclosure Statement. In
In re Roma Group, Inc.,
Finally, the court cannot conclude that the bankruptcy court erred in deciding to convert the appellant’s Chapter 11 case into a Chapter 7 case. It is true that the provisions of Chapter 11 evince a congressional determination that “it is better to reorganize ... when possible, particularly when [reorganization] is in the best interest of creditors.”
In re Macon Prestressed Concrete Co.,
*98 If it is apparent that the debtor has no profitable core around which to structure a plan of reorganization, if the debtor is faced with continuing losses, and if the debtor’s assets are declining in value, the best interests of the creditors may require the court to order liquidation of the debt- or’s estate under Chapter 7.
In re Macon Prestressed Concrete Co.,
III.
For the reasons stated above, the decision of the bankruptcy court converting the appellant’s Chapter 11 case into a Chapter 7 case will be affirmed. An appropriate Order shall this day issue.