________________________________________ 

WHITEFORD, TAYLOR & PRESTON, LLP 

Christopher A. Jones, VSB# 40064 

David W. Gaffey, VSB# 85088 

Jennifer E. Wuebker, VSB# 91184 

3190 Fairview Park Drive, Suite 800 

Falls Church, Virginia 22042 

Tel: (703) 280-3374 

Proposed Counsel for WW Contractors, Inc. 

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE EASTERN DISTRICT OF VIRGINIA 

Alexandria Division 

In re: ) 

) 

WW Contractors, Inc., ) Case No. 18-12095-BFK 

) Chapter 11 

) 

Debtor. ) 

____________________________________) 

DEBTOR’S MOTION TO DISMISS CASE 

WW Contractors, Inc. (the “Debtor”), the debtor and debtor-in-possession in the above 

captioned chapter 11 bankruptcy case, respectfully submits this Debtor’s Motion to Dismiss Case

(the “Motion”) requesting the entry of an order pursuant to Section 1112(b)(1) of Title 11 of the 

United States Code (the “Bankruptcy Code”) dismissing this bankruptcy case. In support of the 

Motion, the Debtor respectfully states as follows. 

Jurisdiction 

1. This Court has jurisdiction to consider this matter pursuant to 28 U.S.C. §§ 157 

and 1334. This is a core proceeding pursuant to 28 U.S.C. § 157(b). 

2. Venue is proper before this Court pursuant to 28 U.S.C. §§ 1408 and 1409. 

3. The statutory predicate for the relief requested 11 U.S.C. § 1112(b)(1). 

Factual Background 

4. On June 12, 2018, the Debtor filed a voluntary petition under Chapter 11 of the 

Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland (the 

“Maryland Court”). This chapter 11 case was filed on short notice due to the Debtor’s concerns 

about its ability to pay its operating expenses. These concerns were precipitated by several 

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issues including rapidly increasing costs associated with a professional employer organization 

(“PEO”) used by the Debtor and creditor pressure stemming from several merchant cash advance 

loans obtained by the Debtor to help cover the Debtor’s increasing costs to the PEO. 

5. On June 14, 2018, the Maryland Court entered an order transferring this case to 

the United States Bankruptcy Court for the Eastern District of Virginia (the “Court”). No official 

committee of unsecured creditors has been formed in this case. 

Relief Requested 

6. The Debtor, in the exercise of its business judgment and consistent with its duties, 

has determined for the reasons set forth below that it is in the best interest of creditors of its 

estate to dismiss this case. 

Basis for Relief 

7. Section 1112(b)(1) provides that “... on request of a party in interest, and after 

notice and a hearing, the court shall convert a case under this chapter to a case under chapter 7 or 

dismiss a case under this chapter, whichever is in the best interests of creditors and the estate, for 

cause ...” 11 U.S.C. § 1112(b)(1). Although “party in interest” is not expressly defined in the 

Bankruptcy Code, section 1109(b) indicates that the term party interest is inclusive of the debtor. 

See 11 U.S.C. § 1112(b) (“A party in interest, including the debtor, the trustee, a creditors’ 

committee, an equity security holders' committee, a creditor, an equity security holder, or any 

indenture trustee, may raise and may appear and be heard on any issue...”) (emphasis added); 

see also In re Page, 118 B.R. 456, 458 (Bankr. N.D. Tex. 1990) (“The term ‘party in interest’ is 

not defined in § 101, but it is defined in a non-exclusive way in § 1109(b) as including the 

debtor...”); see also In re Refine Const. Co., Inc., 175 B.R. 827, 829 (Bankr. E.D.N.Y. 1994). 

8. Here, cause exists for the Court to dismiss the Debtor’s chapter 11 bankruptcy 

case because dismissal is in the best interest of creditors of the Debtor’s estate. Following its 

engagement as counsel to the Debtor in late October, WTP has worked closely with the Debtor’s 

financial professionals to analyze the Debtor’s business operations and cash flow, and to develop 

a reorganization strategy that will result in a successful chapter 11 plan of reorganization. The 

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Debtor’s professionals have determined that the Debtor is a profitable business, even when 

taking into account the significant costs of administering this bankruptcy case (such as payments 

to professionals and United States Trustee fees). The Debtor has timely paid its post-petition 

payroll obligations and has been able to maintain its relationships with suppliers and 

subcontractors. It remains a viable going concern. 

9. However, the Debtor and its professionals are concerned that, while the business 

is profitable, it is not currently generating sufficient cash flow necessary to support a confirmable 

plan of reorganization. Specifically, the Debtor is concerned that a chapter 11 plan of 

reorganization based on its current net cash flow may not be able to pay administrative creditors 

in full on the effective date or provide a meaningful return to unsecured creditors. 

10. But, upon analyzing the Debtor and its operations, the Debtor’s professionals 

believe that the Debtor can enact structural and operational changes that would greatly increase 

its profitability and thus its ability to repay its creditors. The Debtor intends to retain, and 

already has begun seeking, an experienced turnaround professional to streamline the Debtor’s 

business operations, eliminate unnecessary expenses, and restructure the Debtor’s management 

in order to maximize its profitability. The Debtor believes that these changes alone will greatly 

improve the Debtor’s financial performance and stability. The Debtor also intends to seek out 

additional contracts to increase its overall revenue, which will further strengthen the Debtor’s 

finances. The Debtor intends to move quickly to implement these changes which will then allow 

it to better address its financial obligations. 

11. In the exercise of its business judgment, the Debtor believes that the dismissal of 

this bankruptcy case will best allow it to effectuate the changes described above. Upon 

consultation with its financial professionals, the Debtor is unsure that it can sustain both the costs 

of restructuring its company and operations as well as the substantial administrative costs 

incurred in connection with this bankruptcy case for the period necessary to effectuate such 

restructuring and maximize its cash flow. As discussed above, the Debtor has determined that it 

requires the assistance of an experienced turnaround professional to improve its business 

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operations and increase its profitability. The dismissal of this case will permit the Debtor to 

devote funds currently paying the administrative costs of this case, most significantly fees to the 

United States Trustee totaling approximately $40,000.00 to $50,000.00 per quarter1 and 

professional expenses incurred in prosecuting this case, to the employment of this turnaround 

professional and the restructuring of its operations. 

12. Further, unlike many bankruptcy cases, the Debtor does not believe that the 

protections and tools afforded by the Bankruptcy Code are necessary to implement the initial 

changes required to restructure its business operations and to maximize profitability. The 

changes that the Debtor must initially implement are internal, and do not involve the sale of 

assets, avoidance of contracts or leases, or other actions that are facilitated by the Bankruptcy 

Code. Rather, the Debtor requires time to retain its turnaround expert, implement the necessary 

changes to the Debtor’s structure and operations, and maximize its cash flow in order to 

determine the best means of resolving its obligations to creditors. Dismissing this case will 

allow the Debtor and its professionals to devote their full time and resources to fixing the 

company. Once these changes are made, the Debtor will be well positioned to address its debts 

and other financial commitments, whether through negotiations with individual creditors outside 

of the bankruptcy process or through a strategic, well-planned, and financially viable chapter 11 

case. 

Conclusion 

13. Based on the foregoing, the Debtor requests that this Court dismiss its bankruptcy 

case, without prejudice, to permit the Debtor to restructure its internal operations and maximize 

profitability. Once the necessary internal changes have been made, the Debtor will be in the best 

position to address its financial obligations to creditors. The Debtor believes that this result is in 

the best interest of creditors and other parties in interest, including the Debtor’s employees, 

subcontractors, and customers. The Debtor’s proposed strategy will allow it to provide the 

maximum possible return to creditors, which the Debtor believes will greatly exceed any 

1

 The Debtor’s fees to the United States Trustee are now 1% of the Debtor’s total quarterly disbursements. 

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expected recovery in its current bankruptcy case. Also, as the Debtor remains profitable, 

dismissal will allow the Debtor to continue operating and thus preserve the jobs of its 142 

employees and many other employees indirectly employed by its subcontractors. The Debtor 

believes that this is the best result for all parties. 

WHEREFORE, the Debtor respectfully requests that the Court enter an order dismissing 

this case without prejudice and granting such other and further relief as the Court deems just and 

proper. 

Dated: November 16, 2018 WHITEFORD TAYLOR & PRESTON, LLP 

/s/ David W. Gaffey 

Christopher A. Jones, VSB# 40064 

David W. Gaffey, VSB# 85088 

Jennifer E. Wuebker, VSB# 91184 

3190 Fairview Park Drive, Suite 800 

Falls Church, Virginia 22042 

Telephone: (703) 280-3374 

Email: dgaffey@wtplaw.com

Proposed Counsel for WW Contractors, Inc. 

CERTIFICATE OF SERVICE 

I hereby certify that on November 16, 2018, I caused a copy of the foregoing Motion to 

be served via the Court’s Electronic Case Filing System on all parties requesting notice thereby, 

and by first-class mail, postage prepaid, on the parties on the attached Service List.2

/s/ David W. Gaffey 

Counsel 

2 Pursuant to Local Bankruptcy Rule 5005-1(8)(C), the service list is not being served with the mailed version of 

this pleading, but is available electronically via PACER as an attachment to the version filed with the Court.

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