Couldn't have happened to a better right wing cac......
‘This Chapter 11 case is an anomaly” since ‘there never has been a pretense of a rehabilitation or a reorganization’ of Merit Street, a bankruptcy judge said this week.
A federal judge ordered that the bankruptcy case filed by Dr. Phil McGraw’s Merit Street Media be converted to a Chapter 7 liquidation, saying that the Trump-backing celebrity TV psychologist showed a lack of candor by deleting incriminating text messages that revealed a scheme to pay “favored creditors.”
According to Bankruptcy Judge Scott Everett, “there is no hope for rehabilitation” for McGraw’s Chapter 11 bankruptcy filing, and Merit Street would therefore need to go into “liquidation mode” going forward. The change allows the court to sell off the assets of the failed TV network in order to repay companies what they claim is owed.
The ruling is the culmination of a months-long fight surrounding the cable network that Dr. Phil launched just a year ago, which filed for bankruptcy in July and then sued its distribution partner Trinity Broadcasting for breach of contract, accusing the Christian media giant of “sabotage” and abusing “its position as the controlling shareholder.”
TBN would follow up with its own countersuit, claiming that McGraw and his production company Peteski of a “years-long fraudulent scheme that they developed and executed to fleece” the TV conglomerate. Trinity Broadcasting also accused the talk show host of “reprehensible conduct” in negotiating a 10-year/$500 million deal by creating a “false sense of urgency” when he approached the broadcaster about starting a new network following his departure from CBS.
A day before Merit Street filed for bankruptcy, McGraw formed a new venture called Envoy Media, which would essentially deliver the same content as Merit Street across television and digital platforms.
www.the-independent.com
‘This Chapter 11 case is an anomaly” since ‘there never has been a pretense of a rehabilitation or a reorganization’ of Merit Street, a bankruptcy judge said this week.
A federal judge ordered that the bankruptcy case filed by Dr. Phil McGraw’s Merit Street Media be converted to a Chapter 7 liquidation, saying that the Trump-backing celebrity TV psychologist showed a lack of candor by deleting incriminating text messages that revealed a scheme to pay “favored creditors.”
According to Bankruptcy Judge Scott Everett, “there is no hope for rehabilitation” for McGraw’s Chapter 11 bankruptcy filing, and Merit Street would therefore need to go into “liquidation mode” going forward. The change allows the court to sell off the assets of the failed TV network in order to repay companies what they claim is owed.
The ruling is the culmination of a months-long fight surrounding the cable network that Dr. Phil launched just a year ago, which filed for bankruptcy in July and then sued its distribution partner Trinity Broadcasting for breach of contract, accusing the Christian media giant of “sabotage” and abusing “its position as the controlling shareholder.”
TBN would follow up with its own countersuit, claiming that McGraw and his production company Peteski of a “years-long fraudulent scheme that they developed and executed to fleece” the TV conglomerate. Trinity Broadcasting also accused the talk show host of “reprehensible conduct” in negotiating a 10-year/$500 million deal by creating a “false sense of urgency” when he approached the broadcaster about starting a new network following his departure from CBS.
A day before Merit Street filed for bankruptcy, McGraw formed a new venture called Envoy Media, which would essentially deliver the same content as Merit Street across television and digital platforms.
Dr. Phil’s TV outlet to liquidate after bankruptcy loss: ‘No hope for rehabilitation’
‘This Chapter 11 case is an anomaly” since ‘there never has been a pretense of a rehabilitation or a reorganization’ of Merit Street, a bankruptcy judge said this week.
www.the-independent.com
