In re RunItOneTime LLC, et al.

Summary

The United States Bankruptcy Court for the Southern District of Texas denied International Brotherhood of Teamsters, Local 117’s motion for reconsideration of the order approving the sale of the PokerCo assets free and clear of liens, claims, interests, and encumbrances. The court held that it had jurisdiction under 11 U.S.C. § 363 to approve the sale free and clear of successor-liability claims and concluded that Local 117 had received notice and an opportunity to object, so reconsideration was unwarranted.

Holdings

1. A bankruptcy court has jurisdiction under 28 U.S.C. §§ 157(b)(2)(A) and (N) and 11 U.S.C. § 363(f) to approve a sale of estate assets free and clear of claims that could otherwise be asserted against the buyer under successor-liability or alter-ego doctrines.
2. The Sale Order extinguishes liability arising from the Debtors' pre-sale-closing conduct but does not foreclose liability based on Maverick Gaming's post-sale conduct, including any new duty to bargain arising after the sale.
3. Local 117 was not entitled to reconsideration because it showed neither a clear error of law nor manifest injustice, and it did not establish another recognized Rule 59(e) ground.

Questions Presented

1. Whether the bankruptcy court had jurisdiction to approve the PokerCo asset sale free and clear of successor-liability and successor-employer claims.
2. Whether the Sale Order contained a clear error of law because the court determined that Maverick Gaming was not a successor or alter ego without conducting a separate factual analysis.
3. Whether denying Local 117's motion for reconsideration would cause manifest injustice.
4. Whether Local 117 demonstrated a basis for reconsideration under Rule 59(e).

Disposition

other