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Alex Jones' company files for bankruptcy midway through Sandy Hook damages trial
Alex Jones is trying to use subchapter 5 of Chapter 11 yet again. Subchapter 5 of Chapter 11 of the Bankruptcy Code is a fairly new provision designed for small bankruptcies and has a cap on the size of estate. Alex Jones has caused Free Speech Systemes to file now so as to try to avoid this cap
Link to tweet
https://www.texastribune.org/2022/07/30/alex-jones-company-bankruptcy/?utm_campaign=trib-social-buttons&utm_source=twitter&utm_medium=social
Alex Jones’ main company, Free Speech Systems, filed for bankruptcy on Friday, midway through a two-week trial to determine how much in damages the Texas-based conspiracy theorist will pay the parents of a Sandy Hook shooting victim. The filing is not expected to disrupt the trial to award damages for defamation taking place in Austin, which is set to resume Monday morning.
In the bankruptcy filing, posted by the Austin American-Statesman on Saturday, Free Speech Systems filed under a subchapter designated for small businesses, which a Sandy Hook families’ lawyer said is an effort to avoid oversight......
Free Speech Systems filed under subchapter five of the bankruptcy code, which is reserved for small businesses, defined as having less than $7.5 million in debt, aside from money owed to affiliates or insiders.
Of Free Speech Systems’ $79 million in liabilities, Moshenberg said he suspects much of that debt is to insiders, like Jones and his parents and children, and therefore would be exempt from the total debts to qualify as a small business.
Reynal did not immediately respond to a request for comment on Saturday. The Austin American-Statesman reported that Reynal told Austin District Judge Maya Guerra Gamble that the filing was done now so the size of the damage from the current trial can be provided to the bankruptcy court.
In the bankruptcy filing, posted by the Austin American-Statesman on Saturday, Free Speech Systems filed under a subchapter designated for small businesses, which a Sandy Hook families’ lawyer said is an effort to avoid oversight......
Free Speech Systems filed under subchapter five of the bankruptcy code, which is reserved for small businesses, defined as having less than $7.5 million in debt, aside from money owed to affiliates or insiders.
Of Free Speech Systems’ $79 million in liabilities, Moshenberg said he suspects much of that debt is to insiders, like Jones and his parents and children, and therefore would be exempt from the total debts to qualify as a small business.
Reynal did not immediately respond to a request for comment on Saturday. The Austin American-Statesman reported that Reynal told Austin District Judge Maya Guerra Gamble that the filing was done now so the size of the damage from the current trial can be provided to the bankruptcy court.
This is another fraudulent bankruptcy filing by Jones
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