Conspiracy theorist Alex Jones He is seeking court permission to convert his personal bankruptcy reorganization to a liquidation, which would allow a large portion of his assets to be sold to help pay some of the $1.5 billion owed to victims’ relatives. Sandy Hook Elementary School Shooting,
Jones and his media company, Free Speech Systems, both filed for bankruptcy reorganization after Sandy Hook families won a lawsuit against them after they repeatedly described the 2012 shooting in Newtown, Connecticut, that killed 20 first-grade students and six educators, as a hoax.
But Jones and the Sandy Hook families have not been able to agree on how they should resolve the matter, resulting in Jones filing a petition in U.S. Bankruptcy Court in Houston on Wednesday asking the judge to convert his personal case from a Chapter 11 reorganization to a Chapter 7 liquidation.
Conspiracy theorist Alex Jones appears on the witness stand to testify in the Sandy Hook defamation damages lawsuit in Connecticut Superior Court in Waterbury, Connecticut, on September 22, 2022. Jones asked the court on Wednesday, June 5, 2024, for permission to convert his personal bankruptcy reorganization to a liquidation, which would sell a large portion of his assets to help pay some of the $1.5 billion he is owed to relatives of victims of the Sandy Hook Elementary School shooting. (Tyler Sizemore/Hearst Connecticut Media via AP)
“The debtor does not anticipate that sufficient resolution can be reached with the interested parties to ratify the Chapter 11 plan of reorganization,” Jones’ filing states. “Because there is no reasonable likelihood of a successful reorganization, remaining in Chapter 11 would result in additional administrative expenses without a concomitant benefit to the debtor’s estate.”
Jones’ bankruptcy attorneys did not immediately respond to messages seeking comment Friday.
Christopher Mattei, an attorney for the families, said in a statement that “Alex Jones has hurt so many people. Connecticut families have fought for years to hold him accountable, no matter the cost and personal risk. It is their steadfast focus on meaningful accountability, not just money, that has brought them to the brink of justice, which is most important.”
Meanwhile, the Sandy Hook families are asking the same judge to change Free Speech Systems’ case from reorganization to liquidation.
Judge Christopher Lopez has scheduled a hearing in Houston for June 14 to decide how to resolve the cases.
Jones’ lawyers have said the company’s case also appears to be headed toward liquidation, or could be withdrawn.
Liquidation could mean Jones would have to sell most of his assets, including his company and its properties, but he could keep his home and other personal belongings that are exempt from bankruptcy liquidation. The proceeds would go to his creditors, including Sandy Hook families.
If Free Speech Systems’ case is tossed out, the company would be back in the same position it was in after being awarded $1.5 billion in lawsuits and would send its efforts to recover damages back to Texas state courts. and Connecticut Where the verdict was pronounced.
Jones has decided to sell some of his personal assets to pay off his creditors, including his Texas farm worth about $2.8 million.
But liquidating Jones and his company’s assets would yield only a fraction of the money owed to Sandy Hook families.
According to the most recent financial statements filed in bankruptcy court, Jones personally owns about $9 million in assets, including his $2.6 million home in the Austin-area in Texas and other real estate. He reported his living expenses for April alone as about $69,000, including about $16,500 in expenses including maintenance, housekeeping and insurance on his home.
InfoWars’ parent company, Free Speech Systems, which employs 44 people, had about $4 million in cash at the end of April. The business earned about $3.2 million in April, including sales of dietary supplements, clothing and other items promoted by Jones on his show, while expenses were reported at $1.9 million.
Last weekend Jones warned on his show that his company was facing closure because of 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 avoid being shut down – which did not happen.
Judge Lopez ruled Monday that Jones can continue to work until June 14, when a decision on a possible liquidation is expected.
Jones said on his show that he might resume broadcasting through some other means even if Free Speech Systems and InfoWars were sold.
Jones had offered a bankruptcy reorganization plan under which he could continue to operate Free Speech Systems and InfoWars, while paying the Sandy Hook families a minimum of $55 million over 10 years. Prior to that proposal, the families had offered to repay their debts for a minimum of $85 million.
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The families of many, but not all, of the Sandy Hook victims sued Jones and won two cases in Connecticut and Texas.
Relatives said they were shocked by Jones’ comments and the actions of his followers. They testified during the hearing about being harassed and threatened by Jones’ followers, some of whom personally told grieving families that the shootings never happened and that their children never existed.
