Conspiracy theorist Alex Jones is asking the court for permission to convert his personal bankruptcy reorganization into liquidation, which would result in the sale of much of his assets to help pay off some of the $1.5 billion he owed. he owes to the relatives of the victims of the Sandy Hook Elementary School shootings.
Posted at 9:36 p.m.
Dave Collins
Associated Press
Mr. Jones and his media company, Free Speech Systems, both filed for bankruptcy after the families of the Sandy Hook children won their cases against him. He had repeatedly called the 2012 shooting — which killed 20 first graders and six educators in Newtown, Connecticut — a hoax on his Infowars programs.
But Mr. Jones and the families of the Sandy Hook children failed to agree on how to resolve the situation, leading Mr. Jones to file a petition Wednesday in U.S. Bankruptcy Court in Houston asking a judge to convert his personal case, a reorganization under Chapter 11 of the American bankruptcy law, to that provided for by Chapter 7, i.e. a 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,” Mr. 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. »
Mr. Jones’ bankruptcy lawyers did not immediately respond to messages on 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 risking their lives. It was their continued efforts to hold him accountable, not just to get money, that brought about justice.
Christopher Mattei, family lawyer
The Sandy Hook families, for their part, are asking the same judge to transform the proceedings from a reorganization into a liquidation.
Judge Christopher Lopez has scheduled a hearing for June 14 in Houston to decide how to resolve the cases.
Mr. Jones’ lawyers said the case also appeared headed for liquidation, or that it could be thrown out.
Between liquidation and restructuring
Liquidation could mean Mr. 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 families of Sandy Hook children.
PHOTO MARCUS YAM, NEW YORK TIMES ARCHIVES
Alex Jones has repeatedly stated on his online show Infowars that the Sandy Hook massacre – which left 26 victims, including 20 children – was a hoax.
If Free Speech Systems’ claim is unsuccessful, the company would return to the same position it was in after the $1.5 billion was awarded in the lawsuits and return efforts to recover damages to the state courts of Texas and Connecticut, where the verdicts were handed down.
Mr. 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 the assets of Mr. Jones and his company would raise only a fraction of what he owes the families of the Sandy Hook children.
According to the most recent financial statements filed with the bankruptcy court, Mr. 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 Mr. Jones promotes on his show, while reporting spending $1.9 million .
Last weekend, Mr. Jones warned on his show that his company was facing imminent closure due to what he called a conspiracy by the government and Democrats linked 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.
Judge Christopher Lopez ruled Monday that Mr. Jones could continue working until June 14, when decisions on possible liquidations are expected.
PHOTO ILANA PANICH-LINSMAN, NEW YORK TIMES ARCHIVES
Alex Jones in his studio
Mr. Jones said on his show that even if Free Speech Systems and Infowars were sold, he might resume his broadcasts in another way.
Mr. Jones had proposed a bankruptcy reorganization plan that would have allowed him to continue operating Free Speech Systems and Infowars while paying the families of the Sandy Hook children a minimum of $55 million over ten years. Before this proposal, the families had suggested that he pay them 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 Mr Jones’ comments and the actions of his supporters. They testified at trials that they were harassed and threatened by Mr. Jones’s supporters, some of whom confronted grieving families in person, saying the shootings never happened and their children never existed.
