Alex Jones asked a bankruptcy court for permission to sell most of his assets, including conspiracy theory media empire InfoWars, to pay the estimated $1.5 billion he owes the families of those killed in the 2012 Sandy Hook Elementary School massacre, according to a report Associated Press Friday.
Free Speech Systems, the company Jones founded that operates InfoWars, had previously filed for Chapter 11 bankruptcy protection after the conspiracy theorist lost a defamation lawsuit brought by family members he defamed. But this week’s filing seeks to restructure Jones and Liberal Speech Systems into a Chapter 7 liquidation, the Associated Press reported.
The victim’s family reportedly accepted the terms of the settlement Friday night Reuters, but a judge still needs to approve the process. The families rejected the previous terms because they would have allowed Jones to retain control of InfoWars.
Jones appeared to hold back tears during his speech, calling the Sandy Hook shooting that killed 20 children and six adults a “hoax” staged by “actors.” performative crying on his show last week. Jones is upset about having to sell the $2.8 million ranch to help pay off the debt owed to the families. But the toughest road may still lie ahead for Jones as he tries to liquidate nearly everything except his primary residence in Texas.
Jones was banned from X before it was acquired by billionaire Elon Musk, but was later reinstated last year, providing a social media conduit for his manic rants. Every other major social media platform has banned the conspiracy theorist, but if Jones loses InfoWars, he can still start over with a new brand on X and build something new from the ground up.
Or, in a crazier hypothesis, InfoWars and Free Speech Systems could be sold to people ideologically aligned with Jones, who would then reposition Jones as the centerpiece of entertainment.
The Associated Press explains that the latest move to change Chapter 11 to Chapter 7 comes after negotiations with families failed:
Jones proposed a bankruptcy reorganization plan that would allow him to continue operating Free Speech Systems and Infowars while paying the Sandy Hook family at least $55 million over 10 years. Prior to this proposal, the families had offered to repay their debts for at least $85 million.
According to the Associated Press, Free Speech Systems currently has 44 employees and about $4 million in cash on hand. According to the Associated Press, in April this year, the business had revenue of about $3.2 and expenses totaling about $1.9 million.
A bankruptcy court hearing is scheduled for June 14, where we may learn more about a potential liquidation of the assets Jones is concerned about.
