Lawyers for the families had accused the far-right-wing website of seeking Chapter 11 protection in Texas for "sinister" purposes, and sought to have the bankruptcy dismissed.
U.S. Bankruptcy Judge Christopher Lopez said he hoped for a resolution but would continue to prepare for a May 27 hearing on whether the bankruptcy case should be dismissed. The U.S. Department of Justice's bankruptcy watchdog had also called for the case to be dismissed. Lee said that objection was close to being resolved too.
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