Infowars Tries New Bankruptcy Section for Managing Litigation

Danning Gill Partner John N. Tedford, IV was quoted in The Deal in an article discussing the Subchapter V bankruptcy cases of three entities related to Alex Jones’ conspiracy-oriented website, Infowars.  Among other streamlined relief available as a result of the Subchapter V filings for small business debtors, unless the court orders otherwise, the creditors will not be able to form a creditors’ committee and the debtors won’t need to file a disclosure statement.

Stephanie Gleason
The Deal
April 20, 2022

Three entities associated with Infowars, the controversial, conspiracy-oriented website owned by Alex Jones, filed for Chapter 11 protection on Monday, April 18, using a new section of the code meant for small business — Subchapter V.

Infowars is the first company to attempt to use this new part of the code to manage tort liabilities.  Because the filing is under Subchapter V, there’s no guarantee that claimants — in this case families of victims of the 2012 Sandy Hook school shooting — will receive official committee representation.

In Subchapter V, “the default rule is that there is no committee,” John Tedford of Danning Gill Israel & Krasnoff LLP said.  He added, however, that a court can order one appointed.  There’s nothing to prohibit an official committee.

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