Overview

• In a complaint filed Tuesday in U.S. Bankruptcy Court for the Northern District of Texas, Trinity Broadcasting alleges Phil McGraw and Peteski induced a ten‑year, $500 million agreement through misrepresentations.
• TBN claims it paid $20 million upfront, agreed to $50 million annually, and ultimately spent more than $100 million, at times up to $13 million per month, while no 90‑minute episodes were delivered.
• The broadcaster seeks court declarations on the parties’ rights, including a ruling that McGraw agreed to transfer the Dr. Phil episode library and confirmation of TBN’s designated directors’ authority at Merit Street.
• Merit Street, which filed Chapter 11 on July 2, previously sued TBN for breach of contract, alleging withheld distribution payments, shoddy production services, and failure to secure national carriage.
• Peteski disputes TBN’s assertion on episode delivery, saying the show was formatted to 60 minutes with additional streamed content, and TBN’s complaint also flags a new entity, Envoy Media, formed one day before the bankruptcy.