Infowars Parent’s Bankruptcy Judge Considers Tossing Chapter 11

The parent company of Alex Jones’ right-wing media platform Infowars may not be able to reorganize in bankruptcy as a judge considers tossing the case or converting it to a liquidation proceeding.

Free Speech Systems LLC and Jones, in separate bankruptcies, have been trying to secure approval of exit plans after years of litigating with families of Sandy Hook Elementary School shooting victims. The families hold a $1.5 billion judgment against Jones and his company, which were found financially liable for falsely claiming the massacre was a hoax.

A company that sold dietary supplements Jones promoted to his Infowars audience has moved to convert Free Speech’s bankruptcy to a Chapter 7 liquidation, but didn’t seek a dismissal of the case. Judge Christopher M. Lopez of the US Bankruptcy Court for the Southern District of Texas said Tuesday during a status conference that by mid-June he would decide whether to “confirm, convert, or dismiss” Free Speech’s bankruptcy.

“All three are equal options on the table,” Lopez said.

A status conference in Jones’ separate bankruptcy is scheduled for May 21.

There is “an excellent chance” that both bankruptcies will be converted to liquidations and a “frank discussion” about the status of each should be had, said Stephen Lemmon of Streusand Landon Ozburn & Lemmon LLP. Lemmon represents PQPR Holdings Limited LLC, the dietary supplement company, which itself has ties to Jones and his family but is managed separately.

PQPR also recently moved for partial summary judgment on a claim that Free Speech owed it an additional $6.3 million through a 2020 agreement related to the $54 million in secured debt it says it’s already owed.

Annie Catmull of O’ConnorWechsler PLLC, who represents Free Speech, asked the court to allow initial responses to the partial summary judgment to determine the next steps.

Free Speech filed a complaint in July 2023 seeking to undo previous transactions with PQPR, saying the payments made were fraudulent transfers. PQPR has been accused of receiving millions in insider payments from Free Speech.

Responses are due by May 20 and a ruling is likely before a June 14 hearing, Lopez said.

Free Speech Systems LLC v. PQPR Holdings Ltd. LLC, Bankr. S.D. Tex., No. 23-ap-03127, status conference 4/30/24.