(WJET/WFXP) — Info Wars host and conspiracy theorist Alex Jones is seeking to reclassify his Chapter 11 bankruptcy into a Chapter 7 liquidation, signaling an end to his efforts to settle the $1.5 billion defamation lawsuit stemming from lies told about the 2012 Sandy Hook Elementary School massacre.
According to the emergency order filed June 5, “… there is no reasonable prospect of a successful reorganization.” Jones claims that remaining in Chapter 11 would only incur additional expenses without any benefit.
This comes just days after a federal judge rejected a request to immediately shut down Jones’ media company, Free Speech Systems. The company would have been able to operate until June 14, when the judge would have decided whether Jones’ bankruptcy reorganization would be converted into a liquidation that would sell off his assets.
Under the Chapter 7 liquidation, Jones would still be responsible for the $1.5 billion awarded in the defamation lawsuit. Converting to Chapter 7 liquation would mean that Jones would have to sell off most of what he owns, which includes his company and its assets. However, he would be able to keep his home and other personal belongings exempt from the liquidation. The proceeds from the liquidation would go towards the creditors, including the Sandy Hook families.
Over the weekend, Jones went on his web and radio show with “emergency broadcasts” claiming Free Speech Systems, including his Infowars broadcasts, were going to be shut down at any minute by the federal government and bankruptcy system. That did not happen. At one point, he urged his followers to form a human chain around his studio in Austin, Texas, to protect it.
According to the most recent financial statements filed in the bankruptcy court, Jones personally has about $9 million in assets including his $2.6 million Austin-area home and other real estate. He also listed his living expenses at about $69,000 for April alone, including about $16,500 for expenses on his home including maintenance, housekeeping 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 from selling the dietary supplements, clothing and other items that Jones promotes on his show, while listing $1.9 million in expenses
The Associated Press contributed to this report.
