Infowars’ bankruptcy spotlights a relatively new part of Chapter 11 bankruptcy law—Subchapter V— intended to help small businesses reorganize at less cost.
Right-wing radio host Alex Jones, who controlled the conspiracy theory site, and his companies were found liable for defamation and emotional distress in lawsuits by relatives of the 2012 Sandy Hook Elementary School and other shooting victims. Jones had said the shootings were a hoax.
Companies that had ties to Jones filed for bankruptcy protection under Subchapter V as a way to cap his liability before state courts can determine damages.
What is Subchapter V?
Under Subchapter V ...