Right-wing conspiracy theorist Alex Jones has put forth a bankruptcy exit plan that offers to pay Sandy Hook Elementary School shooting victims’ families a sum of at least $55 million over the course of 10 years. The proposed amount falls short by $30 million compared to what the families had suggested and is only a fraction of the approximately $1.4 billion in defamation judgments against Jones. These judgments were related to his false claims that the 2012 Sandy Hook Elementary School shooting was a hoax. Jones filed for bankruptcy protection a year ago after these judgments were made.
Jones’ Chapter 11 plan, which requires court approval, suggests that those who choose to settle with him would receive a portion of at least $5.5 million annually over a decade. Additionally, settling family members could also receive all the disposable income from Jones’ bankrupt Infowars parent company, Free Speech Systems LLC, and half of his personal income over five years. Subsequently, they would receive a quarter of his income in the following five years.
In exchange for accepting this settlement, the Sandy Hook victim families would receive faster payments. However, they would be unable to further pursue Jones for the full amount they believe they are owed. The plan indicates that unsecured creditors would receive a substantial distribution, more than what they would receive in a chapter 7 liquidation.
Avi Moshenberg, a McDowell Hetherington bankruptcy attorney representing a group of the Sandy Hook families, stated that they are currently examining Jones’ plan and will provide their assessment in due time.
Jones’ proposal sharply contrasts with the options put forth by the victim families last month, which suggested that he should conclude his bankruptcy by paying creditors a minimum of $85 million over a 10-year period or by liquidating his assets. Jones’ bankruptcy lawyer has deemed the families’ proposal unrealistic.
The Sandy Hook families, along with an official committee of Jones’ creditors, have argued in court that the bankruptcy case for the right-wing radio host should conclude by February.
The Chapter 11 exit plan comes after Judge Christopher M. Lopez determined in October that Jones remains accountable for approximately $1.1 billion of the $1.4 billion debt owed from defamation judgments in Connecticut and Texas. The remaining $300 million has not yet been cleared for discharge in bankruptcy.
Jones was recently granted permission by the court to sell off personal items on his Infowars shows, including guns and jewelry, with the proceeds being put into escrow to cover his legal fees related to the bankruptcy. Any remaining funds after bankruptcy proceedings would be used for creditor payments under the Chapter 11 plan.
Jones is represented by Crowe & Dunlevy PC and Jordan & Ortiz PC, while the unsecured creditors’ committee is represented by Akin Gump Strauss Hauer & Feld LLP.
Jones’ attorneys have not yet provided a comment on the matter.
