Infowars parent offers new senior adviser to lead bankruptcy case

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Infowars’ parent company has proposed a new chief restructuring officer to lead its bankruptcy, seeking to overcome a setback suffered by a judge’s rejection of its previous choice for the job.

Free Speech Systems LLC, controlled by far-right conspirator Alex Jones, filed in a Texas bankruptcy court on Monday for approval to hire CPA J. Patrick Magill and his firm, Magill PC, as the new CRO for a cost of $50,000 a month, according to a court filing.

The request comes after Judge Christopher M. Lopez last month denied a motion by Free Speech to employ the previously named CRO due to failure to disclose prior ties to other entities founded by Jones.

Magill’s responsibilities would include overseeing Free Speech’s day-to-day operations and overseeing interactions with creditors, Jones, suppliers and Free Speech’ purported secured lender, PQPR Holdings Limited LLC, according to the emergency request.

Jones will continue to produce his Infowars show and market products on it, the company said.

“This Court’s approval of the debtor’s retention of the CRO and the business is critical and essential to ensuring that the Chapter 11 process begins smoothly and that the debtor has the best managers to help formulate a plan quickly. business and solid reorganization,” Free Speech said. “Without the CRO and the company, the debtor cannot survive Chapter 11.”

In July, Free Speech Systems filed for Chapter 11 small business bankruptcy protection after families of victims of the Sandy Hook Elementary School shooting won judgments against Jones. and his website for falsely claiming the massacre was a hoax.

Since filing for bankruptcy, the families of the Sandy Hook victims have won nearly $50 million in damages from Jones and Free Speech in a lawsuit in a Texas court. A second lawsuit for damages involving the families of the Sandy Hook victims is underway in Connecticut.

In September, the bankruptcy suffered a major setback after Lopez sided with the Justice Department’s bankruptcy watchdog and rejected Free Speech’s request to employ W. Marc Schwartz as director of the restructuring.

The judge also denied a motion to hire attorney Kyung Lee or his firm, Shannon & Lee LLP, as co-counsel in the company’s bankruptcy.

Lee and Schwartz had worked for the debtor for months. Lopez found that they did not disclose in court that their work overlapped with that of three other Jones affiliates in another bankruptcy.

Lopez ordered the bankruptcy trustee in the case to review Free Speech’s financial affairs, operations and insider dealings. The review follows complaints from creditors that the company uses complex corporate structures to hide assets that could be used to pay claims.

The case is In re Free Speech Systems LLC, Banker. SD Tex., No. 4: 22-60043, request of 03/10/22.

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