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☆ Justice Department calls for dismissal of the Corizon bankruptcy
▼ + stars: | 2024-02-25 | by ( Dakin Campbell | Nicole Einbinder | ) www.businessinsider.com time to read: +5 min

Read previewIn the latest blowback to the correctional healthcare company formerly known as Corizon Health, the Department of Justice's US Trustee Program — the watchdog of the federal bankruptcy system — called for the dismissal of its contentious bankruptcy. In a mid-January motion, a committee representing prisoners who filed suit against Corizon alleging medical neglect requested that Judge Christopher Lopez dismiss the bankruptcy outright. In that letter, Warren lauded the Trustee for filing its October objection to Corizon's bankruptcy plan. While Corizon recently offered a larger, $54 million settlement proposal, the committee representing the current and former prisoners opposed it. "The federal government's bankruptcy watchdog has taken a strong stand to protect against big corporations' abuse of our bankruptcy system," she said in her statement.

Persons: —, Christopher Lopez, Ha Ngyuen, Andrew Jiménez, Corizon, Elizabeth Warren, Dick Durbin, Bernie Sanders, Warren, Isaac Lefkowitz, Lefkowitz, Nguyen, Jason Brookner Organizations: Service, Department of Justice's, Business, U.S, Department of Justice, Tehum Care Services, M2LoanCo, Geneva Consulting Locations: Texas, Tehum

Sandy Hook families who won nearly $1.5 billion in legal judgments against conspiracy theorist Alex Jones for calling the 2012 Connecticut school shooting a hoax have offered to settle that debt for only pennies on the dollar — at least $85 million over 10 years. His time is up," lawyers for the Sandy Hook families wrote. But this month, a court-appointed restructuring officer upped Jones' pay to about $57,700 biweekly, or $1.5 million a year, saying he has been “grossly” underpaid for how vital he is to the media company. If Jones doesn't accept the families' offer, Lopez would determine how much he would pay the families and other creditors. Relatives, of many but not all, of the Sandy Hook victims sued Jones in Connecticut and Texas, winning nearly $1.5 billion in judgments against him.

Persons: Sandy Hook, Alex Jones, Jones, “ Jones, Vickie Driver, ”, Christopher Lopez, Lopez, Jones ’ Organizations: Free Speech Systems, Speech Systems, Monday, Sandy Hook Elementary Locations: Connecticut, Houston, Sandy, Newtown , Connecticut, Texas

☆ 6 troubling questions about the Corizon bankruptcy deal
▼ + stars: | 2023-10-26 | by ( Dakin Campbell | Nicole Einbinder | ) www.businessinsider.com time to read: +20 min

The bankruptcy of prison health provider Corizon has faced pressure from senators and a federal regulator in recent weeks. Other troubling questions surrounding the bankruptcy involve payments to insiders, "dishonest" testimony, and a secret data breach. The other company, Tehum, was saddled with most of Corizon's liabilities and, in February, filed for bankruptcy. AdvertisementAdvertisementNine US senators have written to Corizon successor companies Tehum Care Services and YesCare demanding answers about Corizon's efforts to "manipulate bankruptcy law." AdvertisementAdvertisementLefkowitz repeatedly said under oath during a June creditor call that he didn't know who owned Geneva Consulting — the company Corizon paid $5.5 million.

Persons: Corizon, —, Christopher Lopez, David Jones, Elizabeth Freeman, YesCare, Jones, Tehum, Judge Jones, Freeman, Ian Cross, Elizabeth Warren, Bernie Sanders, Cory Booker, Dick Durbin, Lopez, they're, Kevin Eckhardt, Hector Garcia Jr, Hector Garcia, Belen Lowery, Garcia's, Jeff Sholey, Isaac Lefkowitz, Lefkowitz, Sara Tirschwell, Jeffrey Scott King, Ayodeji, Michelle Rice, Jennifer Finger, Sholey, Edward Janger, Janger, he's, didn't, Geneva, Russell Perry, Baker, Hostetler, Tehum's, Tracey Grissom, Grissom, Julia Tutwiler, Roman, Sannikov, CISA, Tehum hadn't, What's, it's Organizations: Service, Tehum Care Services, Justice Department, Corizon, Arizona Department of Corrections, Rehabilitation, Geneva Consulting, Tehum, University of Missouri Health Care, Brooklyn Law School, Geneva, Genesis Healthcare, Department, US, Court, Southern, Southern District of, Baker, FBI, Infrastructure Security Agency, of Health, Human, CISA, HHS, HIPAA, Women Locations: Houston, Texas, YesCare, Reorg, New Mexico, Corizon, Geneva, Southern District, Southern District of Texas, Alabama, Wetumpka , Alabama, Rivers, bitcoin, Tehum

☆ Powerful senators fire off letter decrying 'abusive' tactics in Corizon bankruptcy
▼ + stars: | 2023-10-25 | by ( Dakin Campbell | Nicole Einbinder | ) www.businessinsider.com time to read: +10 min

Nine US senators including Elizabeth Warren, Dick Durbin, and Bernie Sanders have sent a letter to Corizon leaders demanding answers on its bankruptcy. The letter says Corizon has sought "to manipulate bankruptcy law" and calls the strategy "abusive." Citing Insider's reporting, the senators gave Corizon two weeks to turn over details about its use of the Texas Two-Step to shield assets from creditors. AdvertisementAdvertisementA powerful group of senators have pressed for answers about the bankruptcy of the private prison healthcare provider formerly known as Corizon Health. "The Texas Two-Step is a distorted use of the U.S. bankruptcy system by corporations to evade mass tort liability," the senators write.

Persons: Elizabeth Warren, Dick Durbin, Bernie Sanders, Corizon, —, Cory Booker, Ron Wyden, Tehum, Jeffrey Sholey, Isaac Lefkowitz, Tehum's, Sholey, Lefkowitz, Sen, Warren, YesCare, Hector Garcia, Adria Malcom, excoriate Corizon, Hector Garcia Jr, David Jones, Jones, Christopher Lopez, Durbin, Johnson, Sanders, Booker, Wyden, Democratic Sens, Richard Blumenthal, Mazie, Jeff Merkley, Peter Welch of Organizations: Service, Tehum Care, Finance, Corizon, Detention, Genesis Healthcare, Geneva Consulting, Genesis, Geneva Consulting —, Genesis HealthCare Inc, US, Texas, Committee, Democratic Locations: Texas, Ana, Las Cruces , New Mexico, New Mexico, Alabama, Richard Blumenthal of Connecticut, Hawaii, Oregon, Peter Welch of Vermont

☆ Judge rules Alex Jones can’t use bankruptcy to avoid paying $1.1 billion to Sandy Hook families
▼ + stars: | 2023-10-20 | by ( Lauren Del Valle | ) edition.cnn.com time to read: +3 min

CNN —A federal bankruptcy judge ruled Thursday that bankruptcy proceedings will not shield Infowars host Alex Jones from more than $1.1 billion in damages he owes the families of Sandy Hook shooting victims who won a civil defamation case against him in Connecticut last year. The families filed a motion in May asking the court to force Jones to pay the trial damages and rule out the possibility of a forced settlement in Chapter 11 proceedings. Jones and other InfoWars personalities called the massacre a hoax and accused the victims’ families of being crisis actors. Infowars filed bankruptcy last July in the middle of their trial. The summary judgments issued Thursday only addressed Alex Jones’ bankruptcy proceedings, not those of his company, which were not filed under traditional Chapter 11 bankruptcy.

Persons: Alex Jones, Sandy Hook, Jones, Christopher Lopez, Lopez, Neil Heslin, Scarlett Lewis, Jesse Lewis, Lewis, Heslin, Infowars, Noah Pozner, Judge Lopez, Alex Jones ’, he’s Organizations: CNN Locations: Connecticut, Newtown , Connecticut, Texas

Infowars founder Alex Jones arrives to speak to the media after appearing at his Sandy Hook defamation trial at Connecticut Superior Court in Waterbury, Connecticut, U.S., October 4, 2022. REUTERS/Mike Segar/File Photo Acquire Licensing RightsNEW YORK, Oct 19 (Reuters) - Conspiracy theorist Alex Jones cannot use his personal bankruptcy to escape paying at least $1.1 billion in defamation damages stemming from his repeated lies about the 2012 Sandy Hook elementary school massacre, a U.S. bankruptcy judge ruled Thursday. Courts in Connecticut and Texas have already ruled that Jones intentionally defamed relatives of school children killed in the mass shooting, and they have ordered Jones to pay $1.5 billion in damages. Lopez ruled that more than $1.1 billion of those verdicts, awarded for defamation and intentional infliction of emotional distress, cannot be wiped away in bankruptcy. Attorneys for Jones and the Sandy Hook families did not immediately respond to a request for comment.

Persons: Alex Jones, Sandy Hook, Mike Segar, Christopher Lopez, Jones, Lopez, defaming Leonard Pozner, Veronique De La Rosa, Noah, Dietrich Knauth, Diane Craft, David Gregorio, Alexia Garamfalvi, Rod Nickel Organizations: Connecticut Superior, REUTERS, U.S, Sandy Hook Elementary, Free Speech Systems, CNN, Thomson Locations: Waterbury , Connecticut, U.S, Houston , Texas, Connecticut, Texas, Newtown , Connecticut

☆ Federal judge hits the brakes on Corizon bankruptcy deal
▼ + stars: | 2023-10-18 | by ( Dakin Campbell | Nicole Einbinder | ) www.businessinsider.com time to read: +7 min

A Texas judge has slowed down a bankruptcy deal involving Tehum, formerly Corizon, a leading prison health provider. The judge on the case, Christopher Lopez, raised other concerns, saying "the fundamental deal has to be reconsidered." A federal judge has declined to consider expedited approval of the plan's disclosures, saying far too many questions remained unanswered. "We're not going forward today," Judge Christopher Lopez said at a hearing on Tuesday in the Southern District of Texas bankruptcy court in Houston. The settlement deal would resolve hundreds of the malpractice suits for just $5,000 each — even those from families suing on behalf of loved ones who they say died due to Corizon's neglect.

Persons: David Jones, Christopher Lopez, —, We're, Sen, Elizabeth Warren, Corizon, Lopez, it's, I've, Jason S, Lopez's, Jones, Elizabeth Freeman, Freeman, Ha Nguyen, Hector Garcia, Hector Garcia Jr Organizations: Tehum, US, Service, Southern District of, Houston, Justice Department Locations: Texas, Southern District, Southern District of Texas, Houston, YesCare, Corizon, New Mexico

☆ Top US bankruptcy judge resigns following revelation of undisclosed romantic relationship
▼ + stars: | 2023-10-15 | by ( Nicole Einbinder | Dakin Campbell | ) www.businessinsider.com time to read: +4 min

Insider recently revealed that prominent bankruptcy judge David Jones was in a romantic relationship with a bankruptcy attorney. Both Jones and the attorney had involvement with the bankruptcy case of the prison healthcare company Corizon. Jones oversaw the settlement talks in Tehum's bankruptcy; Freeman represented YesCare — and signed off on Jones' appointment as mediator in May. "Judge Jones did not disclose his relationship with Ms. Freeman to the parties, to their counsel or to the bankruptcy judge who appointed Judge Jones," the misconduct complaint says. Already, the disclosure of Jones' relationship has encouraged the US Trustee to intervene.

Persons: David Jones, Jones, —, –, Elizabeth Freeman, Jackson Walker, Freeman, Corizon, Tehum, YesCare —, Michael Van Deelen, Priscilla Richman, Richman, Judge Jones, Christopher Lopez, " Jones Organizations: Fifth, Service, Southern, Southern District of Texas, Corizon Health, Tehum Care Services, Wall Street Journal, Appeals, Circuit, Fifth Circuit, Bloomberg Locations: Southern District, Texas, Corizon, Tehum's

☆ Prominent bankruptcy judge David Jones recused from cases, under investigation after exposure of undisclosed romantic relationship
▼ + stars: | 2023-10-13 | by ( Nicole Einbinder | Dakin Campbell | Esther Kaplan | ) www.businessinsider.com time to read: +7 min

Last week, Insider revealed that prominent bankruptcy judge David Jones was in a romantic relationship with a bankruptcy attorney. The Office of the US Trustee, the bankruptcy regulator, has filed an objection in the Corizon bankruptcy case, citing Jones' "admissions." The Office of the US Trustee intervenesToday the Office of the US Trustee, the federal regulator that oversees bankruptcy cases, took the unusual step of intervening in the bankruptcy case. AdvertisementAdvertisementThe office filed multiple objections to the proposed settlement plan overseen by Judge Jones, including concerns about Jones' role as mediator. The bankruptcy plan breaks creditors down into several classes.

Persons: David Jones, Jones, —, Elizabeth Freeman, Freeman, Corizon, Tehum, Michael Van Deelen, didn't, he'd, Harris, Marvin Isgur, Christopher Lopez, Lopez, Judge Jones, Hector Garcia Jr, Hector Garcia, they're, Lila Hassan Organizations: Fifth Circuit, Service, Southern, Southern District of, Court, Fifth, Tehum Care, Wall Street Journal, Houston, Corizon Locations: Southern District, Southern District of Texas, Texas, YesCare, New Mexico

☆ Lawsuit alleges undisclosed relationship involving federal judge that could cloud Corizon bankruptcy deal
▼ + stars: | 2023-10-06 | by ( Dakin Campbell | Nicole Einbinder | ) www.businessinsider.com time to read: +7 min

A civil complaint alleges that federal bankruptcy judge David Jones, who mediated the Tehum bankruptcy, is in a romantic relationship with Elizabeth Freeman, who represented YesCare in the bankruptcy. Van Deelen's case was ultimately "removed" to Jones' bankruptcy court, according to Van Deelen's complaint. The document alleges that, while working the McDermott case, Freeman was Jones' "live-in girlfriend" in a home worth more than a million dollars. According to the complaint, the letter detailed the "corruption involving Judge David R. Jones" and his romantic relationship with Freeman. Judge Marvin Isgur, another bankruptcy judge in the court, later denied it.

Persons: Tehum, —, Corizon, David Jones, Elizabeth Freeman, Isaac Lefkowitz, Freeman, Jones, Michael Van Deelen, Christopher Lopez, Van Deelen's, Michael Van Deelen Frank Ozment, Tracy Grissom, Ozment, YesCare, Deelen's, McDermott, Van Deelen, Jackson Walker, Liz Freeman, Defendant Jones, Matt Cavenaugh, didn't, David R, Marvin Isgur Organizations: Service, Southern, Southern District of, YesCare Corp, US, McDermott International Locations: Texas, YesCare, Tehum, Southern District, Southern District of Texas, Alabama, Houston, Coldspring

☆ Prison healthcare giant Corizon reaches tentative bankruptcy deal that could shortchange prisoners; Sen. Elizabeth Warren pledges oversight
▼ + stars: | 2023-09-01 | by ( Dakin Campbell | Nicole Einbinder | ) www.businessinsider.com time to read: +9 min

Sen. Elizabeth Warren has called Corizon's use of the Two-Step "an alarming red flag." Sylvia Jarrus for InsiderCorizon Health rebranded as Tehum Care Services last year and filed for bankruptcy in February. The other company, Corizon, later rebranded as Tehum, received most of the parent company's liabilities — and then declared bankruptcy. Warren is "actively looking" into the Corizon Two-Step, Sarabia confirmed last week, before the settlement was announced. US Bankruptcy Court, Southern District of TexasSome creditors have worried for months that the company would reach a settlement on unfavorable terms.

Persons: Elizabeth Warren, Isaac Lefkowitz, Sen, William Kelly, Sylvia Jarrus, Tehum, Tracey Grissom, Hector Garcia, Corizon, Christopher Lopez, Aaron Kaufman, Kaufman, YesCare, Alex Sarabia, Warren, Sarabia, Warren's, it's, Dick Durbin, Johnson, Durbin, Judge Lopez, Nick Zluticky, Lopez, Zluticky Organizations: Corizon Health, Health, Corizon, Tehum Care, Alabama, US, Southern, Southern District of Texas, Alabama Department of Corrections, Court, Tehum, Committee Locations: Sen, Texas, Saginaw , Michigan, Michigan, New Mexico, Tehum, Southern District, Corizon's Texas, Delaware

☆ Diamond Sports calls in mediators as it pushes toward a reorganization plan
▼ + stars: | 2023-08-17 | by ( Lillian Rizzo | ) www.cnbc.com time to read: +2 min

On Thursday, a bankruptcy judge approved Diamond's request to bring in mediators as it is negotiates with creditors to reach a reorganization plan. Two judges from the U.S. Bankruptcy Court in the Southern District of Texas — Judges David Jones and Marvin Isgur — will preside as mediators. Last week, Diamond won court approval to extend the period of time it has to come up with a reorganization plan. Diamond has until Sept. 30 to file a reorganization plan, weeks ahead of the opening of the 2023-24 NBA and NHL seasons. Besides shedding its hefty debt load, Diamond is looking to reset some of its rights deals with teams to reflect so-called market rates.

Persons: Christopher Lopez, David Jones, Marvin Isgur —, Diamond Organizations: Ohio, Bally Sports, Cincinnati Reds, Cleveland Guardians, Progressive, Diamond Sports Group, NBA, NHL, U.S, Bankruptcy, Southern District of Texas, Diamond, Nexstar Media Group, Gray Television, Scripps Co, CNBC, Phoenix Suns Locations: Cleveland, America, Southern District

☆ Sandy Hook Families Say Alex Jones Cannot Hide Behind Bankruptcy
▼ + stars: | 2023-08-15 | by ( Elizabeth Williamson | More About Elizabeth Williamson | ) www.nytimes.com time to read: +1 min

Lawyers for the Sandy Hook families who won historic defamation damages against the Infowars conspiracy theorist Alex Jones told a federal bankruptcy judge in Houston on Tuesday that Mr. Jones should not be allowed to use his Chapter 11 filing to evade $1 billion-plus verdicts made against him. If the judge rules in the families’ favor, Mr. Jones would likely be working the rest of his life to pay the debt. Mr. Jones spent years spreading lies that the 2012 shooting that killed 20 first graders and six educators at Sandy Hook Elementary School in Newtown, Conn., was a hoax aimed at gun control. Families of 10 victims sued him for defamation, and in trials in Texas and Connecticut were awarded about $1.4 billion in damages. As the cases went to trial, Infowars declared bankruptcy, and Mr. Jones declared personal bankruptcy late last year.

Persons: Sandy Hook, Alex Jones, Jones, Christopher Lopez, Infowars, Jones’s, Chris Davis, Veronique De La Rosa, Noah Pozner Organizations: Sandy Hook Elementary Locations: Houston, Sandy, Newtown, Conn, Texas, Connecticut

Since Jones and his company are bankrupt, the trials would not normally be allowed to proceed without bankruptcy court permission. Jones has said that he can not afford to pay the Sandy Hook defamation judgments, and is attempting to resolve all legal claims against him through a settlement in bankruptcy. Leonard Pozner and Veronique De La Rosa, whose six-year-old son Noah was killed in the Sandy Hook shooting, would proceed to trial in October. Without a placeholder value, the Texas defamation claims could be given far less weight than the defamation claims that have already resulted in $1.5 billion in verdicts, according to Jones’ court filings. The case is Alex Jones, U.S. Bankruptcy Court for the Southern District of Texas, No.

Persons: Sandy Hook, Alex Jones, Jones, Christopher Lopez, Lopez, Sandy, Leonard Pozner, Veronique De La Rosa, Noah, De, De La Rosa, Marcel Fontaine, Fontaine, De La, Fontaine's, Jennifer Hardy, Vickie Driver, Crowe, Ray Battaglia, Pozner, Willkie Farr, Gallagher Read, Dietrich Knauth Organizations: U.S, Speech Systems, De La, CNN, Bankruptcy, Southern, Southern District of, Dunlevy, Systems, Thomson Locations: U.S, Houston, Newtown , Connecticut, Texas, Parkland , Florida, Southern District, Southern District of Texas

NEW YORK, May 19 (Reuters) - The families of Sandy Hook victims are preparing to sue Alex Jones' wife and other family members to help satisfy $1.5 billion in judgments they won from lawsuits against the bankrupt right wing conspiracy theorist over his lies about the deadly 2012 U.S. school massacre. The families have a "very strong case" to claw back certain payments to Jones' family, including a $1 million payment from Jones to his wife, Zensky said. "You can imagine that if someone was to sue their wife over transfers, that's a little hard in the home," Driver said. The families have accused Jones and FSS of profiting off lies about the shooting for years and sued him for defamation. U.S. Bankruptcy Judge Christopher Lopez, who is overseeing the bankruptcies, said Jones and the Sandy Hook families should make one last effort to reach a settlement.

☆ US bankruptcy judge blocks NBA team Phoenix Suns' new TV deal
▼ + stars: | 2023-05-10 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

NEW YORK, May 10 (Reuters) - A U.S. bankruptcy judge on Wednesday blocked the NBA's Phoenix Suns from moving ahead with a television and streaming rights deal for its basketball games, saying the team violated the rights of its current broadcast partner, the bankrupt Diamond Sports Group. The Phoenix Suns last month announced they would broadcast future games to television and online streaming through a partnership with Gray Television Inc (GTN.N) and video technology startup Kiswe. The Suns' attorneys argued that its TV deal with Diamond expired with the end of the 2022-2023 regular season, and that the new deal would not interfere with Diamond's rights under its existing contract. "The Suns are saying one thing outside the court and another thing inside it," Lopez said. Financial terms of the Phoenix Suns' contracts with Diamond Sports and with Gray TV were kept sealed in bankruptcy court.

☆ Judge halts Suns' bid to exit bankrupt Diamond Sports network
▼ + stars: | 2023-05-10 | by ( Lillian Rizzo | ) www.cnbc.com time to read: +3 min

A general view during the second half in Game Two of the NBA Finals between the Milwaukee Bucks and the Phoenix Suns at Phoenix Suns Arena on July 08, 2021 in Phoenix, Arizona. The Phoenix Suns' move to exit cable TV is no slam dunk. The Suns since 2011 have aired their regular season games on the Diamond owned and Bally's-branded regional sports network, which was previously under the Fox Sports banner. He added the Suns and Diamond must come to a consensual agreement and find an appraiser to move the process forward. However, the judge found that the Suns moved too quickly to announce the deal in late April without proper communication with Diamond Sports.

The Sandy Hook families said that they need specialized assistance to review Jones' assets, income, and ability to pay those verdicts. Jones filed preliminary financial statements earlier in February, but listed several trusts that held unknown assets. Jones filed for personal bankruptcy in December, saying he could afford to pay less than 1% of the judgments handed down in two Sandy Hook defamation trials. Lopez will decide in March if Jones has to face a third Sandy Hook defamation trial. The Sandy Hook families have expressed concern that Jones is using bankruptcy to limit payments on the defamation judgments while attempting to collect income outside of the bankruptcy court's oversight.

It would be the third defamation trial against Jones and his company Free Speech Systems, after two previous ones found Jones and FSS liable for a combined $1.5 billion in damages. A Texas court previously found them liable and the proposed trial would determine how much Jones owes the parents. He estimated a two-week trial would cost $600,000, reducing the amount of money available to pay Pozner, De La Rosa and other Sandy Hook parents with legal claims against him. Jones filed for personal bankruptcy in December after those two trials concluded, saying he could afford to pay less than 1% of the Sandy Hook defamation judgments. Sandy Hook parents raised concerns at Tuesday's hearing about Jones's recent recording of a podcast similar to his Alex Jones Show in a new studio space and under a brand not affiliated with FSS.

Companies Free Speech Systems, Llc FollowDec 19 (Reuters) - Conspiracy theorist Alex Jones on Monday asked a judge to allow him to take a $1.3 million annual salary from the bankrupt parent company of his Infowars' website. Jones drew a $1.3 million salary from Free Speech Systems before its bankruptcy, and his attorney asked U.S. Bankruptcy Judge Christopher Lopez to restore his salary to that level at a hearing Monday. Free Speech System's monthly revenue has dropped to $1.9 million from pre-bankruptcy levels of $6 million to $7 million, attorneys from the company said, adding that it currently has about $1.8 million in cash. Marty Brimmage, an attorney for the Sandy Hook families, opposed Jones' request for an increased salary. Lopez said he is "open to increasing" Jones' pay but did not have enough evidence to make a ruling yet.

☆ Bankruptcy Judge Orders Independent Review of Alex Jones’s Infowars Over Conflicts
▼ + stars: | 2022-09-20 | by ( Jonathan Randles | ) www.wsj.com time to read: 1 min

A Texas bankruptcy judge ordered an independent review of Infowars’ financial affairs and refused to let the company hire chapter 11 advisers picked by its founder Alex Jones after determining they failed to disclose a professional conflict. Judge Christopher Lopez of the U.S. Bankruptcy Court in Houston said he was concerned that a bankruptcy lawyer and restructuring officer hired by Infowars parent company Free Speech Systems LLC could act as impartial advisers looking out for the broadcasting site and its creditors. Those include families of the Sandy Hook Elementary School victims who have sued Mr. Jones for spreading falsehoods about the 2012 shooting in Newtown, Conn., which killed 20 first-graders and six adults.

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