Free Speech Systems now has until Dec. 16 to file Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Oct. 26 – Free Speech Systems LLC now has until Dec. 16 to file a Chapter 11 plan, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

In its motion seeking the additional time, the debtor said its immediate focus has been to address acute operational issues resulting from the “management vacuum” created by the absence of a chief restructuring officer, following the court’s denial of the application to retain W. Marc Schwartz as CRO.

The company said its focus has also been on addressing product acquisition, and implementing operational cost cutting. So far it hasn’t constructed budgets and pro forma projections, which are essential to confirmation of a plan of reorganization under Subchapter V of Chapter 11, the debtor said.

Also, on Oct. 12, the court ordered mediation of disputes that ultimately will involve terms of a plan, but the date for the mediation has not been set.

Austin, Tex.-based Free Speech Systems, fully owned by Alex Jones, filed bankruptcy on July 29 under Chapter 11 case number 22-60043.

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