Overview

• Trinity Broadcasting filed a countersuit in U.S. Bankruptcy Court in the Northern District of Texas accusing Phil McGraw and Peteski of fraud and breach under a 10-year, $500 million agreement.
• The complaint says McGraw delivered no episodes and alleges TBN spent over $100 million and up to $13 million per month while production targets went unmet.
• TBN claims McGraw misrepresented cost cuts from moving production to Texas, promised 90‑minute episodes, asserted ownership of rights, and demanded a $20 million upfront payment via Peteski.
• Relief sought includes contract clarifications, a ruling that the Dr. Phil episode library was to be transferred, possible rescission of the deal and stock swap, and reinstatement of TBN’s board designees at Merit Street.
• Merit Street, already in Chapter 11, maintains TBN failed to secure national distribution, engaged in self‑dealing and provided poor production services, while TBN also alleges McGraw positioned a new venture, Envoy, to replace Merit Street.