Alex Jones, conspiracy theorist is asking the court for permission to convert its personal bankruptcy reorganization into liquidation, which would result in the sale of much of its assets to help pay some of the $1.5 billion it owes to victims’ relatives of the Sandy Hook Elementary School shooting.
Jones and his media company, Free Speech Systems, Both filed for bankruptcy After Sandy Hook Families Win Lawsuits Against Him Over His Repeated Calls The 2012 shooting that killed 20 first graders and six educators in Newtown, Connecticut, a hoax about its Infowars programs.
But Jones and the Sandy Hook families failed to agree on how to resolve the cases, leading Jones to file a motion Wednesday in U.S. Bankruptcy Court in Houston asking a judge to convert his case personnel from a Chapter 11 reorganization to a Chapter 7 liquidation.
“The Debtor does not anticipate that a resolution can be reached with other parties having sufficient interest to confirm a plan of reorganization under Chapter 11,” Jones’ filing states. “Given that there is no reasonable prospect of successful reorganization, remaining in Chapter 11 would result in additional administrative expenses with no concomitant benefit to the debtor’s estate.”
Jones’ bankruptcy attorneys did not immediately respond to messages Friday seeking comment.
Christopher Mattei, an attorney for the families, said in a statement that “Alex Jones hurt so many people. Connecticut families fought for years to hold him accountable, no matter the cost and risk to his life. It was their constant focus on meaningful accountability, not just money, that brought him to the brink of justice in the way that matters most.
The Sandy Hook families, meanwhile, are asking the same judge to change the Free Speech Systems case from a reorganization to a liquidation.
Judge Christopher Lopez scheduled a hearing on June 14 in Houston decide how to resolve cases.
Jones’ lawyers said the company’s filing also appeared headed toward liquidation, or could be withdrawn.
Liquidation could mean Jones would have to sell most of what he owns, including his business and assets, but could keep his home and other personal belongings exempt from liquidation in bankruptcy. The profits would be returned to its creditors, including the Sandy Hook families.
If Free Speech Systems’ case is withdrawn, the company would return to the same position it was in after the $1.5 billion was awarded in the lawsuits and it would refer efforts to recover damages to the state courts of Texas and Connecticut, where the verdicts were rendered.
Jones has already decided to sell some of his personal assets to pay his creditors, including his Texas ranch worth about $2.8 million.
But a liquidation of Jones and his company’s assets would raise only a fraction of what he owes the Sandy Hook families.
According to the most recent financial statements filed with the bankruptcy court, Jones personally owns approximately $9 million in assets, including his $2.6 million home in the Austin, Texas, area and other real estate. . He said his living expenses totaled about $69,000 in April alone, including about $16,500 for expenses related to his home, including maintenance, cleaning and insurance.
Infowars’ parent company, Free Speech Systems, which employs 44 people, had nearly $4 million in cash at the end of April. The company earned nearly $3.2 million in April, including sales of dietary supplements, clothing and other items that Jones promoted on his show, while listing 1.9 million spending dollars.
Last weekend, Jones warned on his show that his company was facing imminent closure due to what he called a conspiracy by the government and Democrats related to his bankruptcy cases. He urged his supporters to form a human chain around his Austin studio to prevent a takeover, and said he was sleeping in the studio to guard against a shutdown — which did not happen.
Lopez, the judge, ruled Monday that Jones could continue operating until June 14, when decisions on possible liquidations are expected.
Jones said on his show that even if Free Speech Systems and Infowars were sold, he might resume his broadcasts in another way.
Jones had proposed a bankruptcy reorganization plan that would have allowed him to continue operating Free Speech Systems and Infowars while paying the Sandy Hook families a minimum total of $55 million over 10 years. Prior to this proposal, the families had offered to settle their debt for a minimum of $85 million.
The families of many, but not all, Sandy Hook victims sued Jones and won both cases in Connecticut and Texas.
Relatives said they were traumatized by Jones’ comments and the actions of his supporters. They tested during the trials on being harassed and threatened by Jones’ supporters, some of whom confronted grieving families in person saying the shooting never happened and their children never existed.