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Judge Orders Merit Street Media Liquidated After Dr. Phil Loses Chapter 11 Bid

Findings of deleted texts and creditor favoritism prompted a trustee-led liquidation.

Overview

  • U.S. Bankruptcy Judge Scott W. Everett converted Merit Street’s case to Chapter 7 and ordered a trustee to oversee the sale of assets, including what remains of its media library.
  • Everett called the Chapter 11 effort an “anomaly,” citing deleted messages, plans to favor some creditors, and concluding the business was “dead as a doornail” at filing.
  • Court findings tied Phil McGraw’s new venture, Envoy Media, to plans to hire Merit Street employees and position assets, with reporting noting a recent Charter/Spectrum carriage deal for Envoy.
  • Professional Bull Riders supported conversion and claims roughly $181 million, as Trinity Broadcasting pursues countersuit allegations of fraud and mismanagement tied to a purported $500 million, 10-year deal.
  • Peteski Productions said an appeal is likely and disputed assertions about destruction of evidence, while the trustee-led liquidation and related lawsuits move forward.