Conspiracy theorist Alex Jones is seeking court permission to convert his personal bankruptcy recovery into liquidation, which would lead to the sale of a large portion of his assets to help pay off some of the $1.5 billion he owes to relatives of elementary school shooting victims Sandy Hook.
Jones and his media company, Free Speech Systems, both filed for judicial recovery after Sandy Hook families won lawsuits against him for his repeated calls the 2012 shooting that killed 20 first graders and six educators in Newtown, Connecticut, a hoax on their Infowars programs.
But Jones and the Sandy Hook families were unable to reach an agreement on how to resolve the cases, prompting Jones to file a motion Wednesday in U.S. Bankruptcy Court in Houston asking a judge to convert his personal case from a Chapter 11 reorganization to a Chapter 7 liquidation.
“The debtor does not anticipate that a resolution can be reached with the other parties having sufficient interest to confirm a Chapter 11 reorganization plan,” Jones’ filing said. “Given that there is no reasonable prospect of a successful reorganization, remaining in Chapter 11 would incur 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 at great personal risk. His constant focus on meaningful accountability, not just money, is what has now brought him to the brink of justice in the way that matters most.”
The Sandy Hook families, however, are asking the same judge to convert 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Jones’ lawyers said the company’s case also appeared to be heading toward settlement or could be withdrawn.
Liquidation could mean that Jones would have to sell most of what he owns, including his business and assets, but he could keep his home and other personal belongings that are exempt from bankruptcy liquidation. The proceeds would go to his creditors, including the Sandy Hook families.
If the Free Speech Systems case is dropped, the company would return to the same position it was in after the US$ 1.5 billion was awarded in the lawsuits and would send efforts to recover damages to the state courts of Texas and Connecticut, where the verdicts were reached.
Jones has already decided to sell some of his personal assets to pay creditors, including his Texas ranch, valued at 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 in bankruptcy court, Jones personally owns about $9 million in assets, including his $2.6 million home in the Austin, Texas, area and other real estate. He listed his living expenses at about $69,000 in April alone, including about $16,500 for his home expenses, including maintenance, cleaning and insurance.
Infowars’ parent company, Free Speech Systems, which employs 44 people, had nearly $4 million in cash on hand at the end of April. The business made nearly $3.2 million in April, including the sale of dietary supplements, clothing and other items that Jones promotes on his show, while also listing $1.9 million in expenses.
Last weekend, Jones warned on his show that his company faced an imminent shutdown because of what he called government and Democratic collusion related to its bankruptcy cases. He asked his supporters to form a human chain around his Austin studio to prevent a takeover, and said he was sleeping in the studio to protect against a shutdown — which didn’t happen.
Lopez, the judge, ruled Monday that Jones could continue operating until June 14, when decisions on potential settlements are expected.
Jones said on his show that even if Free Speech Systems and Infowars are sold, he could resume broadcasting in some other form.
Jones had offered a bankruptcy reorganization plan that would allow him to continue operating Free Speech Systems and Infowars while paying the Sandy Hook families a minimum total of $55 million over 10 years. Before this proposal, families had offered to settle their debt for a minimum of $85 million.
The families of many, but not all, of the Sandy Hook victims sued Jones and won both trials in Connecticut and Texas.
Relatives said they were traumatized by Jones’ comments and the actions of his followers. They testified at the trials about being harassed and threatened by Jones believers, some of whom personally confronted the grieving families, saying the shooting never happened and their children never existed.
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