Extra! Extra! Alex Jones (Prison Planet TV, LLC) Files for Chapter 11

[bornfree2]

With two judgments breathing down his back, Alex Jones has filed Chapter 11

Here is the initial filing on RECAP

https://storage.courtlistener.com/re...455829.1.0.pdf

Can someone with some PACER credits, install the plugin, and buy up the other ones?

Here is the docket

https://www.courtlistener.com/docket...planet-tv-llc/

Will be interesting to see how much disclosure is made

[justbroke]

It's a Chapter 11 for an LLC which means just a reorganization. The principals don't need to disclose anything. I personally don't see any reason to dig through an LLC's filing.

[bornfree2]

Update - 2 more associated companies

Actually there are 3 seperate LLC he has declared Chapter 11

IWHealth, LLC (22-60021) - Infowars health (docket)

petition - https://storage.courtlistener.com/re...455828.1.0.pdf

InfoW, LLC (22-60020) -Infowars (docket)

petition -
https://storage.courtlistener.com/re...5827.1.0_1.pdf

Again anyone with PACER credits can contribute and 'free' the other docs in the docket. I imagine the media will be all over this

[bornfree2]

It's a Chapter 11 for an LLC which means just a reorganization. The principals don't need to disclose anything. I personally don't see any reason to dig through an LLC's filing.

They dont need to disclose all the property and associations?

[justbroke]

They dont need to disclose all the property and associations?

The LLC itself needs to disclose all their holdings, property (assets), liability and creditors, etc. Not specifically Alex Jones. If it was Alex Jone's personal Chapter 11 bankruptcy I still wouldn't read it unless it presented a very interesting question on some aspect of bankruptcy law.

[bornfree2]

The LLC itself needs to disclose all their holdings, property (assets), liability and creditors, etc. Not specifically Alex Jones. If it was Alex Jone's personal Chapter 11 bankruptcy I still wouldn't read it unless it presented a very interesting question on some aspect of bankruptcy law.

I havent dug deep into this, but isnt his defamation suit at him personally. So why would the corporations be declaring Chapter 11. On this filing scroll down to see the part on listing claims. It appears to be all the lawyers or families from his Sandy Hook case. If so why would they sue the LLC to get a claim against him personally?

[justbroke]

Yes, I think he has a separate defamation suit. Maybe he is waiting for that to go to trial and then file a personal bankruptcy. I don't know his strategy.

From what I understand, the money that is owed by Infowars (and/or the holding company) is mostly from the lawsuits. That is the purpose of an LLC is to protect the principals. If he's a single-member LLC, it would be interesting if they pierce the corporate veil (of the LLC). We create an LLC to protect ourselves from personal liability. So long as the LLC was operated correctly with no blurring of the lines between the LLC entity and the person, then the person is insulated from the LLC's wrongdoings.

I have not read anything other than general press articles on this. From what I understand the LLC(s) were sued and Alex was personally sued. They likely sued the LLC because it owned Infowars and the articles were likely published under the LLC. He may have done that to protect himself personally, but the only interesting thing would be if he is able to "prove" it was the LLC and not himself.

[bornfree2]

So the background info is in this 'emergency application'. Skip to pages 6,7 and on for the background story

https://storage.courtlistener.com/re...5827.7.0_1.pdf

13. Jones, FSS, and the Debtors have spent more than $10.0 million in legal fees and
costs since commencement of the Sandy Hook Lawsuits. Despite the substantial amount spent,
both the Texas and Connecticut courts have imposed multiple sanctions and ruled that Jones, FSS,
and the Debtors failed to comply with discovery requirements such that judgment on liability has
been entered against them by default.3

No court has yet to quantify the amount of the damages.

14. The pending litigation presents a classic “race to the courthouse.” The Texas court
is scheduled to be the first damages case to go to trial and is set to commence with jury selection
on April 25, 2022. The damages trial in the Texas actions is scheduled for months before the
damages will be determined in the actions pending in Connecticut.

15. Given the limited cash on hand available to the Debtors, Jones, and FSS, there is a
substantial likelihood that efforts to collect on a judgment of the Texas actions would result in
leaving nothing left for the Connecticut Sandy Hook Plaintiffs or other creditors. Indeed, prior to
even liquidating their claims, the Texas plaintiffs sought execution by initiating the TUFTA
litigation.

And it goes on. So it seems this was filed to seek protection with the Automatic Stay to prevent (well 'pause') the incoming judgements for damages.

edit: much like a personal can do to forstall a judgement on the eve of trial from a debt collector. Declaring chapter 7, pauses the trial, typically causing the plaintiff to dismiss, while the bankruptcy (hopefully) saves them from the unsecure creditors

[bornfree2]

reading further...

It appears they setup a fund (the trust) which will administer the claims. Basically being proactive by defending where the money funds will come from to pay the incoming judgements. Creating a consolidated and controlled trust fund by an independent Trustee. Then the family victims can draw from that claim -- very much like chapter 7 creates the estate fund whereby the creditors can be paid from.

I havent yet dug into chapter 11, but seems this is one mechanism it gives. Pretty cool and very smart

[justbroke]

Chapter 11s are special. They are normally used by businesses when they want to restructure (not shutdown and liquidate). A business needing to just cease operations would file a Chapter 7 liquidation, just like an individual. Some individuals are required to file a Chapter 11 because of the value of all the assets in the bankruptcy estate (typically over about $1.4M total... and a lower amount for unsecured debt).

Normally, a Chapter 11 doesn't get a trustee assigned. In many Chapter 11s, the debtor acts as the trustee with all power of the trustee. This is known as a debtor in possession (DIP). In certain cases, the United States Trustee (UST) will appoint a trustee to oversee the case. This is likely one such case where the UST appoints an actual trustee.

A Chapter 11 can be pre-packaged, like General Motors, or more like the one likely being filed in this case. Pre-packaged Chapter 11s are filed with financing already in place and usually discharge pretty quickly.

[bornfree2]

Update - pushback looking to throw out case

For the foregoing reasons, Movants respectfully request this Court enter an order (i) dismissing with prejudice Case No. 22-60020, In re InfoW, LLC, Case No. 22-60021, In re IWHealth, LLC, and Case No. 22-60022, In re Prison Planet TV, LLC, and (ii) awarding Movants any further relief the Court deems appropriate. Respectfully submitted this 26th day of April 2022.

Here is the brief to dismiss the case for abuse of system https://storage.courtlistener.com/re...55827.36.0.pdf

Docket is here

https://www.courtlistener.com/docket/63242631/infow-llc/

[bornfree2]

Objection! - Due process violation, and uh, what emergency?

Alex Jones lawyer lobbies back! Objecting on emergency order on grounds that 21 day notice was not given before hearing (this Friday) and thus due process violated. In addition, seeks to understand exactly what is the 'emergency' to dismiss the case outright?

There is no emergency that justifies a hearing on the Emergency Motion on less than 72 hours’ notice.

Big bill lawyers.... be ... lawyering .... and ... billing

https://storage.courtlistener.com/re...55827.40.0.pdf

[justbroke]

Big bill lawyers.... be ... lawyering .... and ... billing

How about... be protecting their client from an unwarranted Motion to Dismiss?

[bornfree2]

How about... be protecting their client from an unwarranted Motion to Dismiss?

Having read all the briefs, I am being convinced by the plaintiffs for dismissal and this bankruptcy is indeed an abuse.

Their arguments in prior briefing is essentially that this chapter 11 is an abuse because among other things

- it was filed on the eve of a trial for damages on Alex Jones personally as well as 1 LLC
- it was done specifically to manage the blows to come on Alex Jones personally, by creating a 'Litigation Settlement Fund' with which the 'creditors' would law claim on
- it was filed essentially as a 'shell estate' with which the damages fall outside of Alex Jones personally

This newest brief by another firm supporting dismissal says it best

I do not think Alex Jones has a good team with a good strategy. Well we shall see just how good they are because this is heating up

[justbroke]

Nearly every brief I've read by the moving opponent/creditor, read like it's an appellate decision with all the reasons why the motion should be granted. Even cases they cite are often misconstrued or miss something. That's why I wait for the judge to make a ruling and review the judge's opinion with their findings of fact and conclusions of law.