Below is our initial take on recent bankruptcy-related developments:
Alex Jones Must Pay Sandy Hook Families Nearly $1 Billion for Hoax Claims, Jury Says | Reuters
A Connecticut jury decided that Alex Jones, the right-wing conspiracy theorist who claimed that the Sandy Hook shooting was a hoax, must pay at least $965 million in damages to families of the victims.
S&K Take: A fitting end to the opening act of the Alex Jones saga. This amount seems clearly beyond his or his company’s capability to pay, so now it will become a bankruptcy issue. That means that the battle for claimants has just begun. Presumably this obligation will be the fulcrum security in the Free Speech Systems case, and I would guess that dischargeability of the debt will be an issue. Once Jones gets new lawyers, they will have to get up to speed and get creative.
Bang Billionaire’s Empire of Caffeine Crashes Into Bankruptcy | Bloomberg
Court papers filed in Florida revealed that the now bankrupt parent company of energy drink, Bang Energy, owes more than $500 million to their competitor Monster Beverage Co., and another $115 million to their former distributor, PepsiCo Inc.
S&K Take: Bang was the big filing this week, with the case taking root in the Southern District of Florida. There have been a few articles about the circumstances leading to the bankruptcy, with Owoc, apparently quite the character, at the center of it all. Whether the company can be salvaged remains to be seen. There are massive litigation claims from Monster Energy and Orange Bang (with Monster already vocal in the case). Should be a wild ride.
Crypto Investment Firm Blockwater Technologies Defaults on DeFi Loan | CoinDesk
Blockwater Technologies, a South Korean blockchain investment firm, defaulted on a loan of $3.4 million from TrueFi, a decentralized finance lending company, marking the continuation of bankruptcies in the crypto industry.
S&K Take: Another crypto firm is feeling the pain, this one on the smaller side of the spectrum. Blockwater defaulted on a small loan and is now considering an administrative proceeding to address its insolvency.
LATAM Airlines Prepares to Exit Bankruptcy in November | Reuters
South American carrier, LATAM Airlines, plans to exit bankruptcy in the first week of November with an $8 billion reorganization plan to assist the airline in its ongoing operations.
S&K Take: Looks like LATAM is just about there on its restructuring, having filed a document detailing its exit financing package. Hopefully they are able to exit in the near term after having endured a bankruptcy proceeding since 2020.
