Judge Rules Dr Phil Media Company Faces Chapter 7 Liquidation Amid Evidence Deletion Allegations

A federal bankruptcy judge has ordered the liquidation of Dr. Phil McGraw's media company, Merit Street Media, after finding that McGraw deleted incriminating text messages and attempted to manipulate the bankruptcy process to favor certain creditors. The judge ruled that Merit Street Media, which had filed for Chapter 11 bankruptcy, should instead be converted to a Chapter 7 liquidation overseen by a trustee to ensure a fair process for creditors. Court evidence showed McGraw described his bankruptcy filing as a "gangster move" aimed at diminishing the equity stake of Trinity Broadcasting Network (TBN) and avoiding payments to other creditors such as Professional Bull Riders. The judge criticized McGraw's lack of candor and the attempt to destroy evidence, calling the business "dead as a doornail" at the time of filing. McGraw's production company, Peteski Productions, has denied wrongdoing and expressed intent to appeal the ruling. The legal battle centers on a $500 million deal between McGraw and TBN, with the broadcaster accusing McGraw of "reprehensible conduct" and breach of contract.