Conspiracy theorist Alex Jones is asking the court for permission to convert his bankruptcy reorganization into a liquidation, which would allow him to sell off most of his assets to partially repay the $1.5 billion he owes the families of the victims of the Sandy Hook Elementary School shooting.
Jones and his media company, Free Speech Systems, filed for bankruptcy reorganization after families of the Sandy Hook shooters won a lawsuit against him for repeatedly calling the 2012 shooting in Newtown, Connecticut, that killed 20 first-graders and six teachers a hoax on his Infowars show.
Judge rules Alex Jones can’t use bankruptcy protection to avoid paying $1 billion to Sandy Hook Elementary School families
But Jones and the Sandy Hook Elementary School families have been unable to reach an agreement on how to resolve the case, and Jones filed a motion Wednesday in U.S. Bankruptcy Court in Houston asking a judge to change his personal bankruptcy case from a Chapter 11 reorganization to a Chapter 7 liquidation.
Conspiracy theorist Alex Jones takes the stand during his Sandy Hook shooting defamation trial in Connecticut Superior Court in Waterbury, Connecticut, on September 22, 2022. Jones asked the court for permission to convert his bankruptcy reorganization to a liquidation on Wednesday, June 5, 2024, which would allow him to sell most of his assets to pay off a portion of the $1.5 billion he owes to the families of the victims of the Sandy Hook Elementary School shooting. (Tyler Sizemore/Hearst Connecticut Media via The Associated Press)
“The Debtors do not anticipate reaching agreements with other interested parties sufficient to approve a Chapter 11 plan of reorganization,” Jones’ filing said. “Given that a successful reorganization is unlikely, remaining in Chapter 11 bankruptcy would result in the Debtors incurring additional administrative expenses without the associated benefits to their estate.”
Jones’ bankruptcy lawyer did not immediately respond to a message Friday seeking comment.
“Alex Jones hurt so many people, and the Connecticut family has fought for years to hold him accountable, no matter the cost and at great risk,” Christopher Mattei, an attorney for the family, said in a statement. “It is their consistent focus on meaningful accountability, not just money, that has now brought him to the brink of justice in the way that matters most.”
Meanwhile, Sandy Hook Elementary School families are asking the same judge to change the Free Speech Systems lawsuit from a restructuring to a liquidation lawsuit.
Judge Christopher Lopez is scheduled to hold a hearing in Houston on June 14 to determine how to resolve the case.
Jones’ lawyers say the company’s lawsuit also appears to be heading for liquidation or may even be dropped.
The liquidation would require Jones to sell most of his possessions, including his company and its assets, but he could keep his home and other personal items, which are excluded from bankruptcy liquidations. The proceeds would go to creditors, including Sandy Hook survivors.
If Free Speech Systems’ lawsuit is dismissed, it will return the company to the same position it was in after the $1.5 billion settlement was awarded in the lawsuit and will return its efforts to recover damages to the state courts in Texas and Connecticut where the judgments were entered.
Jones has already moved to sell some of his personal assets, including a Texas ranch worth about $2.8 million, to pay his creditors.
But liquidating Jones and his company’s assets would likely only recover a small portion of the debt owed to Sandy Hook Elementary School families.
According to his most recent financial statements filed in bankruptcy court, Jones has personal assets of about $9 million, including his $2.6 million home in the Austin, Texas area and other real estate. Jones listed his living expenses at about $69,000 in April alone, including about $16,500 for home-related expenses such as maintenance, housekeeping and insurance.
Infowars’ parent company, Free Speech Systems, has 44 employees and had nearly $4 million in cash at the end of April. The company made nearly $3.2 million in profits in April, including from sales of nutritional supplements and clothing that Jones promotes on his show, but reported expenses of $1.9 million.
Jones warned on his show last weekend that his company was at risk of being shut down due to a government and Democratic conspiracy linked to his bankruptcy case. He called on supporters to form a human chain around his Austin studio in an attempt to prevent a takeover and said he was sleeping at the studio in preparation for the closure, which never happened.
Judge Lopez ruled Monday that Jones can remain open until June 14, the date a decision on a possible liquidation is expected to be made.
Jones said on his show that even if Free Speech Systems and Infowars were sold, he would find other ways to get back on the air.
Jones had proposed a bankruptcy reorganization plan that would allow the Sandy Hook families to continue operating Free Speech Systems and Infowars while paying them a minimum total of $55 million over 10 years. Prior to this proposal, the families had offered to settle their debts for a minimum of $85 million.
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The families of many (but not all) of the victims of the Sandy Hook shooting sued Jones and won in two court cases, one in Connecticut and one in Texas.
The families said they were troubled by Jones’s comments and the actions of his followers. They testified in court that they had been harassed and threatened by Jones’ followers, some of whom directly confronted grieving families who said the shooting never happened and that their children never existed.
