By Trendsetter Tribune 
A judge orders Dr. Phil’s Merit Street Media into Chapter 7 liquidation after explosive allegations and controversial text messages. Here’s what happened
Dr. Phil McGraw’s media venture has taken a stunning turn — and the fallout is massive.
A federal judge in northern Texas ruled that Merit Street Media, Dr. Phil’s television network, will not be allowed to restructure under Chapter 11. Instead, the court ordered a Chapter 7 liquidation, citing concerns about alleged misconduct and questionable decisions surrounding the bankruptcy filing.
A Judge Calls It an “Anomaly”
U.S. Bankruptcy Judge Scott Everett said he had “never seen a case like this,” calling the situation an anomaly.
Reports from Variety and The Hollywood Reporter say the court was particularly troubled by evidence that Dr. Phil allegedly deleted an “unflattering” text message describing what he called a “gangster move.”
That message appeared to reference a strategy to shift control and avoid paying certain creditors through Chapter 11 — something Dr. Phil has strongly denied.
McGraw rejects accusations that he filed for bankruptcy to relaunch under a new company and insists he acted in good faith.
Inside Merit Street Media’s Trouble
Merit Street Media — created to replace CBS as the home of Dr. Phil’s programming — launched in 2023 as a partnership:
- 70% owned by Trinity Broadcasting Network
- 30% owned by McGraw’s Peteski Productions
Court records suggest Dr. Phil allegedly planned to prioritize payments to his own company while leaving “unfavored creditors” — including Trinity and Professional Bull Riders — unpaid.
Even more shocking, Merit filed for bankruptcy one day after McGraw and Peteski reportedly created a new company called Envoy Media.
According to court documents:
McGraw allegedly discussed making Trinity a “passive minority investor” and “taking the money and running.”
Broken Promises and Exploding Costs
The partnership was supposed to last 10 years and be worth $500 million, with Trinity providing distribution and production while Peteski delivered new programming.
But Trinity claims Dr. Phil did not deliver:
- promised viewership
- ad revenue
- product integrations
Meanwhile, Trinity says it spent over $100 million and as much as $13 million monthly, even as disputes intensified.
Dr. Phil’s spokesperson fired back, saying that 214 new episodes aired — though whether those episodes fulfilled the Trinity deal remains deeply disputed.
Lawsuits, Countersuits, and a Courtroom Showdown
The battle quickly escalated:
- Merit sued Trinity for breach of contract
- Trinity countersued for fraud
- Professional Bull Riders filed an emergency motion questioning whether the bankruptcy was filed in bad faith
Dr. Phil maintains he fought to keep the network alive:
“This theory — that this was all a ploy to set up Envoy Media — is absurd. I’m doing everything I can to keep Merit up and running.”
For now, the ruling means this:
Merit Street Media’s assets will be liquidated — not saved.
And the legal war is far from over.