Dr. Phil's Business Facing Uncertainty as Bankruptcy Ruling Orders Asset Sale
Dr. Phil McGraw's business ventures face a setback as a federal judge rules against his use of Chapter 11 bankruptcy for Merit Street Media, following a $500 million deal with Trinity Broadcasting Network. The judge has ordered the transfer of bankruptcy proceedings to Chapter 7 and the sale of assets to pay off debts.
The ruling comes after a trial over a $500 million deal between Dr. Phil's company, Merit Street Media, and Trinity Broadcasting Network. Merit Street Media filed for Chapter 11 bankruptcy in July, with Trinity Broadcasting Network countersuing in August.
The judge expressed concern that Dr. Phil was using one business to launch another, as Merit Street Media was already defunct when the bankruptcy was filed. The judge also criticized Dr. Phil for not being transparent in his deals and communications. Despite the ruling, Dr. Phil's spokesperson has stated they disagree with the court's decision and are considering an appeal.
Meanwhile, Dr. Phil has sealed a carriage deal with Charter for his recently launched Envoy TV network. The future of Dr. Phil's business ventures remains uncertain as the bankruptcy proceedings are set to be transferred to Chapter 7, with assets to be sold off to pay debts.
