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Popular Talk Show Host Loses Bankruptcy Trial: ‘Candor to the Court Is Critical’
A federal judge ruled that converting Merit Street Media's bankruptcy to Chapter 7 liquidation ensures fairness for creditors amid concerns of manipulation by Dr. Phil.
- U.S. Bankruptcy Judge Scott W. Everett ordered conversion of Merit Street Media's case to Chapter 7 on Tuesday, rejecting efforts to keep it in Chapter 11 as being in creditors' best interests.
- Judge Scott W. Everett said the case was an anomaly, noting Merit Street Media was dead at filing and Phil McGraw formed Envoy Media, rehiring employees and deleting texts to favor creditors.
- At the heart of the trial was a purported $500 million, 10-year agreement and a disputed $425 million valuation, with Trinity Broadcasting Network alleging Merit Street failed to produce contracted programming and funneled up to $13 million monthly into production while episode delivery remains contested.
- A Chapter 7 trustee will oversee the sale of Merit Street Media's media library and litigation over whether Trinity Broadcasting breached its contract, while Professional Bull Riders holds a $181 million claim.
- McGraw plans to appeal and Merit Street Media counsel immediately requested a stay, with parties facing a 14-day window to file notice under the Federal Rules of Bankruptcy Procedure.
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Dr. Phil loses major ruling in bankruptcy case, TV network is ordered into liquidation
The TV host's Merit Street Media filed for bankruptcy in July.Jamie McCarthy/Getty Dr. Phil McGraw in New York in February 2024TV personality Dr. Phil's bankruptcy case is not going the way he wanted it to.Dr. Phil, whose full name is Phil McGraw, cannot keep the bankruptcy of his media startup Merit Street Media in Chapter 11, Judge Scott W. Everett of the U.S. Bankruptcy Court for the Northern District of Texas ruled on Tuesday, according to a…
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Total News Sources16
Leaning Left5Leaning Right2Center6Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 39%
C 46%
15%
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