Alex Jones still fighting asset sale

AUSTIN – The Austin American-Statesman says that conspiracy theorist Alex Jones has asked a bankruptcy court judge to stop the sale of his Infowars platform, accusing satirical news company The Onion and Connecticut families of using a “flagrantly non-compliant Frankenstein bid” to win the auction for his media empire last week. Attorneys for Jones filed for a restraining order and temporary injunction on the sale of his company Free Speech Systems and Infowars on Monday evening. This comes after the backup bidder, First United American Companies LLC — a business associated with the ShopAlexJones.com website — filed a motion to disqualify The Onion’s winning bid on Monday morning.

The company behind The Onion, Global Tetrahedron LLC, with the backing of the Sandy Hook Elementary School shooting victims’ families in Connecticut, bought Free Speech Systems and Infowars in an auction last week. According to court filings, First United American Companies believed the cash value of its bid to be higher than the cash value of Global Tetrahedron’s bid. Walter Cicack, the attorney representing First United American Companies, claimed bankruptcy Trustee Christopher Murray colluded with The Onion and the families and violated the terms of the auction set by the judge. The auction attracted only two bids, according to court records and stated by Murray in a status conference held Thursday. Each bid, Murray said in the conference, had different finances and plans, and so Murray made his decision based on which offer would best benefit Jones’ unsecured creditors. First United American Companies’ final bid was $3.5 million for the rights to Infowars and Free Speech Systems, according to evidence submitted in the Monday filing by First United American Companies. The Onion’s final bid was $1.75 million in cash assets with a distributable proceeds waiver — meaning the Connecticut families would forgo up to 100% of their entitlement of the funds to better serve the unsecured creditors depending on the amount of other bids — and the sharing of future revenue that Infowars and Free Speech Systems generates to the families.