A federal judge today ruled Dr. Phil cannot clean his own slate with a Chapter 11 for his now dead Merit Street Media and the multi-million dollar deal he had with Trinity Broadcasting. However, the one-time Oprah protégé hasn’t given up the bankruptcy fight just yet.
Scolding Phil McGraw for not being forthright in his deals and the recent trial, U.S. Bankruptcy Judge Scott Everett said Tuesday he wants the MSM proceedings transferred into a Chapter 7, and the assets sold off to pay off debts.
“Candor to the court is critical,” Judge Everett declared in the just completed hearing, noting how cruical communications had been erased and specific creditors to McGraw’s Merit Street Media were being paid over others The Texas-based judge also made it clear in the summary judgement ruling he thought McGraw was juicing one business to launch another as MSM “was as dead as a doornail when the bankruptcy was filed.”
“Mr. McGraw believed he was calling the shots.”
The verdict comes a couple of weeks after the trial over the fallout from the cursed $500 million deal between Donald Trump pal Dr. Phil and Trinity Broadcasting Network wrapped. On a parallel track, Dr. Phil’s joint venture Merit Street Media filed for Chapter 11 bankruptcy protection in July. The Matthew Crouch-run faith based TBN countersued in August, accusing Dr. Phil of “reprehensible conduct,” trying to play them for millions and trying to pull a fast one to get out of the once much hyped deal to bring the TV shrink to a new audience.
On McGraw’s side, this probably ain’t over.
“We respectfully disagree with the court’s ruling and take issue with its comments concerning Dr. Phil McGraw,” a spokesperson for the Dr. Phil-owned Peteski Productions told Deadline just before the virtual hearing ended. “Dr. Phil is a leader of the highest integrity whose actions reflect honesty, ethics, and a life-long commitment to helping people. We are reviewing all of our options regarding an appeal, which is likely.”
At the same time, Dr. Phil has also moved on, exactly as he seems to have intended.
Earlier this month, McGraw sealed a much-valued carriage deal with Charter for his recently launched Envoy TV. “I’m thrilled to be putting on the Charter team jersey and launching our new flagship Envoy TV network with my friends at the nation’s leading cable and broadband provider,” Dr. Phil asserted on October 6 of the new deal and 24/7 network McGraw-“created and curated” Envoy pumping onto Spectrum TV Select video packages for a potential 12.6 million subscribers in 41 states.
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