Overview
- U.S. Bankruptcy Judge Scott Everett converted Merit Street’s case to Chapter 7 on Tuesday, saying there was never a realistic path to reorganization.
- An independent trustee will sell the company’s assets, including its media library, with the court emphasizing fair, impartial treatment of creditors.
- The court found that Phil McGraw deleted a discovery text and positioned Merit Street’s assets for acquisition by his new venture, Envoy Media, which planned to hire Merit staff.
- Trinity Broadcasting’s countersuit alleging fraud and mismanagement under a purported $500 million deal continues as part of the estate’s litigation overseen by the trustee.
- Professional Bull Riders claims roughly $181 million and supported conversion, while Peteski Productions says it will appeal and denies any destruction of evidence.