This is probably the correct decision. Alex Jones's vitamin company offered 2x more cash, and in the case of a bankruptcy, cash completely trumps any notion of "giving up debt." Especially when the debt being settled is astronomically large and you are giving up a very small portion of it ($7 million out of $1.5 billion). The other creditors are far better off getting more cash, and those $7 million of claims are worth way less than one cent per dollar.
Additionally, the auction here was run farcically, and basically seemed designed to create an outcome where the onion gets to buy this website for no money.
Additionally, the auction here was run farcically, and basically seemed designed to create an outcome where the onion gets to buy this website for no money.