Free Speech Systems committee ‘deeply troubled’ by waste of assets

By Sarah Lizee

Olympia, Wash., Oct. 12 – Free Speech Systems LLC’s official committee of unsecured creditors objected to Alex Jones’ motions seeking allowance and payment of administrative expenses and approval of an employment contract, according to documents filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

“Jones’s goal with respect to each of the motions is clear: to pump needed liquidity into the cash-strapped Jones estate, without compromising Jones’s lavish standard of living or requiring him to sell significant non-exempt assets,” the committee said in the objection.

The group said Jones’ desire to increase the liquidity in his estate without taking cost-cutting measures or selling a vast majority of his non-exempt assets is not a basis to demand immediate payment of an administrative claim tied to a “highly questionable” employment agreement that has not been assumed.

“Rushed entry into a new employment agreement that contemplates a salary untethered to historical dealings between the parties and gives Jones an unfettered right to walk away similarly is not appropriate or in the best interest of Jones’s stakeholders,” the committee said.

“While it may seem antithetical for the committee to object to Jones’s attempts to bring more cash into his bankruptcy estate, the committee is deeply troubled by the dramatic waste of estate assets that has occurred month after month and that would only worsen if Jones were to be given unconstrained access to additional cash.”

Austin, Tex.-based Free Speech Systems, fully owned by Alex Jones, filed bankruptcy on July 29, 2022 under Chapter 11 case number 22-60043.

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