Overview

• On July 2, Merit Street Media filed for Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas and initiated a breach of contract suit against Trinity Broadcasting Network and TCT Ministries.
• The lawsuit alleges TBN abused its controlling‐shareholder role by withholding must-carry rights and failing to deliver production services, forcing Merit Street to incur over $100 million in third-party obligations.
• Merit Street’s bankruptcy petition estimates both its assets and liabilities at $100 million to $500 million and lists more than 200 creditors, including DirecTV, Nexstar and Nielsen.
• The network has scaled back operations after two major layoffs and a programming pullout by Professional Bull Riders, now offering only library content online.
• As it pursues damages and legal fees, Merit Street is moving forward with its Chapter 11 reorganization and remains in arbitration over the PBR rights dispute.