Conspiracy theorist Alex Jones is seeking court permission to convert his personal bankruptcy reorganization to a liquidation, which would lead to a sell-off of a large portion of his assets to help pay some of the $1.5 billion he owes relatives of victims of the Sandy Hook Elementary School shooting.
Jones and his media company, Free Speech Systems, both filed for bankruptcy reorganization after the Sandy Hook families won lawsuits against him for his repeatedly calling the 2012 shooting that killed 20 first graders and six educators in Newtown, Connecticut, a hoax on his Infowars programs.
But Jones and the Sandy Hook families have been unable to agree on how the resolve the cases, leading to Jones filing 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 may be reached with the other parties in interest sufficient to confirm a chapter 11 plan of reorganization,” Jones’ filing said. “Given that there is no reasonable prospect of a successful reorganization, remaining in chapter 11 would incur additional administrative expenses without concomitant benefit to the Debtor’s estate.”
Jones’ bankruptcy lawyers did not immediately reply to Friday messages seeking comment.
Christopher Mattei, a lawyer for the families, said in a statement that “Alex Jones has hurt so many people. The Connecticut families have fought for years to hold him responsible no matter the cost and at great personal peril. Their steadfast focus on meaningful accountability, and not just money, is what has now brought him to the brink of justice in the way that matters most.”
The Sandy Hook families, meanwhile, are asking the same judge to convert Free Speech Systems’ case from a reorganization to a liquidation.
Judge Christopher Lopez has scheduled a June 14 hearing in Houston to decide on how to resolve the cases.
Jones’ lawyers have said that the company’s case also appeared to be headed toward a liquidation, or it could be withdrawn.
Liquidation could mean that Jones would have to sell most of what he owns, including his company and its assets, but could keep his home and other personal belongings that are exempt from bankruptcy liquidation. Proceeds would go to his 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If Free Speech Systems’ case is withdrawn, the company would return to the same position it was in after the $1.5 billion was awarded in the lawsuits and it would send efforts to collect the damages back to the state courts in Texas and Connecticut where the verdicts were reached.
