Free Speech Systems’ case needs examiner appointed, PQPR says

By Sarah Lizee

Olympia, Wash., March 8 – Free Speech Systems LLC’s case needs to have an examiner appointed or be converted, PQPR Holdings Ltd., LLC said in a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

In the alternative, the case should be converted to Chapter 7, PQPR said.

PQPR is an affiliated entity that supplies dietary supplements sold through Inforwars.com.

As background, Free Speech System’s started on July 29, 2022. Patrick Magill was appointed as chief restructuring officer of the debtor through a court order on Oct. 13, 2022.

On Nov. 18, the debtor filed a first amended plan of reorganization. The confirmation hearing is scheduled for March 25.

“Magill has served capably as concerns the company’s business operations,” PQPR said in the motion.

“However, it appears that Mr. Magill lacks the required and necessary experience to formulate and execute a legal strategy related to confirmation or to handle negotiations concerning the proposed plan.”

PQPR said the issues raised by Free Speech Systems’ former lead counsel, Ray Battaglia, in his motion to withdraw are “troubling.”

“Mr. Magill, in a fit of pique, refused to pay Mr. Battaglia because he believed Mr. Battaglia was not following his directions,” PQPR said.

“Those directions included to refuse to engage with counter parties to litigation, including confirmation issues related to the plan.”

“Mr. Magill also refused to even speak with Mr. Battaglia for extended periods of time. This is not what is expected of an estate-retained professional.”

Without the appointment of an examiner with special powers, it isn’t likely that a plan can be confirmed, PQPR said.

PQPR added that, to the extent that plan negotiations continue to be stalled, the case should be converted, and the debtor’s assets should be liquidated for creditors.

Austin, Tex.-based Free Speech Systems filed bankruptcy on July 29, 2022 under Chapter 11 case number 22-60043. Alex Jones’ Chapter 11 case number is 22-33553.

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