Overview

• Trinity Broadcasting filed a countercomplaint in U.S. Bankruptcy Court accusing Phil McGraw, Peteski Productions, and Merit Street of a years‑long fraudulent scheme tied to a 10‑year, $500 million agreement.
• Trinity alleges McGraw failed to deliver the contracted 90‑minute episodes and misrepresented rights to the Dr. Phil library, while Merit Street says TBN withheld distribution payments and provided shoddy production services.
• TBN claims it spent more than $100 million and at times funded up to $13 million per month, and it seeks declaratory rulings on board control and ownership of the Dr. Phil archive.
• Trinity says McGraw formed Envoy the day before the Chapter 11 filing and that operations and personnel were shifted after most Merit Street employees were laid off.
• The court cited discovery resistance as it kept Chapter 11 active, scheduled a Sept. 2 ruling on dismissal or conversion, and continues to hear creditor claims including a $181 million demand from Professional Bull Riders.