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It is both unfair to Alex Jones and any third party bidding on the asset. If some entity was willing to pay more for InfoWars than the debt AJ owes his creditor

It is both unfair to Alex Jones and any third party bidding on the asset. If some entity was willing to pay more for InfoWars than the debt AJ owes his creditors, he would be able to keep the extra. If A owes B and C money and has to sell some asset to satisify the claim, the only fair way to value the asset is to sell it in the open market, an auction. If D will pay $5 for it and E will pay $500 for it, it would be unfair to both A and E if B waves his hands and say he forgoes his claim so long as D gets to buy the item. I understand that InfoWars is likely being sold at auction because no buyer was willing to purchase it for a price that would satisify the debt before bankruptcy, but there is a nomzero chance that some buyer shows up and is willing to pay more for it than someone else specifically to keep it out of that particular buyers hands. Strange. Farfetched. Buy possible. And it wouldn't be fair to allow preference by those owed the debt as it defeats the fair market price process.

Retric 2y ago
It’s normal for entities owed money to be able to use that debt in these kinds of auctions. They still need to cover whatever fraction of debt is owed to 3rd parties with actual cash. This is a backstop as auctions often result in far lower values for assets than a longer sales process can provide. It also results in debtors getting out of more debt. > I understand that InfoWars is likely being sold at auction because no buyer was willing to purchase it for a price that would satisify the debt before bankruptcy, but there is a nomzero chance that some buyer shows up and is willing to pay more for it than someone else specifically to keep it out of that particular buyers hands. Strange. Farfetched. Buy possible. And it wouldn't be fair to allow preference by those owed the debt as it defeats the fair market price process. A blind auction happened and if someone had offered even 1% of Alex Jones debt for info wars they would have won. The specific deal setup by the Onion provided 1.7 million dollars to satisfy other creditors, but the Texas families are owed 49 million. So even if the Connecticut families agreed to accept nothing any deal handing more than 1.7 million to the Texas families would have won. Further, while it seems impossible for Alex Jones to ever get out of this debt, the Onion deal got him closest to that possibility.

Retric 2y ago

It’s normal for entities owed money to be able to use that debt in these kinds of auctions. They still need to cover whatever fraction of debt is owed to 3rd parties with actual cash. This is a backstop as auctions often result in far lower values for assets than a longer sales process can provide. It also results in debtors getting out of more debt. > I understand that InfoWars is likely being sold at auction because no buyer was willing to purchase it for a price that would satisify the debt before bankruptcy, but there is a nomzero chance that some buyer shows up and is willing to pay more for it than someone else specifically to keep it out of that particular buyers hands. Strange. Farfetched. Buy possible. And it wouldn't be fair to allow preference by those owed the debt as it defeats the fair market price process. A blind auction happened and if someone had offered even 1% of Alex Jones debt for info wars they would have won. The specific deal setup by the Onion provided 1.7 million dollars to satisfy other creditors, but the Texas families are owed 49 million. So even if the Connecticut families agreed to accept nothing any deal handing more than 1.7 million to the Texas families would have won. Further, while it seems impossible for Alex Jones to ever get out of this debt, the Onion deal got him closest to that possibility.