Controversial right-wing figure Alex Jones has proposed a bankruptcy exit strategy that involves paying at least $55 million over a decade to families affected by the Sandy Hook Elementary School shooting. This move comes in response to defamation judgments totaling approximately $1.4 billion against Jones for falsely claiming the 2012 shooting was a hoax.
Under the proposed Chapter 11 plan, filed with the US Bankruptcy Court for the Southern District of Texas, those agreeing to settle would divide a minimum of $5.5 million annually over ten years. The plan, however, offers significantly less than the families’ proposed amount and only a fraction of the court-ordered sum.
Jones’ strategy includes additional financial commitments. Families who settle would be entitled to all disposable income from Jones’ bankrupt company, Free Speech System LLC, plus half of Jones’ personal income for five years, followed by a quarter for the next five years.
READ: Alex Jones Must Pay Sandy Hook Families $1 Billion Despite Bankruptcy
The proposal suggests that settling with Jones would expedite payments to the families but would restrict their ability to pursue the full value of their litigation claims against him. The plan asserts that unsecured creditors would receive a substantial distribution, more than they would in a Chapter 7 liquidation scenario.
Those who choose not to settle with Jones will not have a guaranteed minimum payment but can pursue claims that the court has ruled cannot be forgiven in bankruptcy. Jones’s plan also assures full payment to higher priority creditors.
Information for this story was found via ABC News and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
