(Updated with second Dr. Phil statement + Trinity Broadcasting & Professional Bull Riders statements) 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 has not given up the bankruptcy fight just yet.
Scolding Phil McGraw for not being forthright in his deals and the recent trial, US 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 crucial 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 judgment ruling that 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 ruling from the bench comes a couple of weeks after the trial over the fallout from the cursed $500 million deal between Donald Trump and 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.
TBN’s General Counsel, John Casoria had this to say Tuesday: “TBN appreciates the court taking the time and energy to hear the facts, learn the truth, and provide a detailed recitation of the events that transpired. TBN looks forward to bringing this matter to conclusion with a Chapter 7 trustee at the helm.”
That said, Professional Bull Riders, another one of the MSM creditors that was a party to this case, took a bit of a victory lap around the ring today.
“Dr. Phil’s Merit Street Media reneged on its agreement with PBR after just five months for no valid reason, and then Dr. Phil attempted to skirt obligations a second time through a bankruptcy scheme the court called an ‘anomaly,’” a spokesperson for TKO Group-owned PBR said Tuesday. “We’re grateful they did not allow it. We look forward to continuing this process, which thanks to today’s ruling, will be overseen by an impartial trustee, to recover what we’re owed by Dr. Phil and his company.”
On McGraw’s side, this ain’t over and he probably won’t be paying up anytime soon.
“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.”
(5:05 PM PT: Hours later, Dr. Phil’s Peteski had another, more strident take on what had gone down in the Lone Star state courtroom today. “We are filing an immediate appeal,” Peteski said. “We take great exception to the court’s improper assertions regarding the alleged destruction of evidence, which simply did not happen. We will not let this stand given all that Dr. Phil and Peteski Productions have done to protect Merit Street employees, distributors, and other interested parties and to resolve this unfortunate situation. Today’s ruling found that Dr. Phil became the sole director of Merit Street long after the company became overwhelmed by debt thanks to Trinity Broadcasting’s mismanagement. Dr. Phil is proud of his efforts to help Merit Street through this process but is also pleased that he can now devote his time and energy to his new network, Envoy.”
However, it seems that an appeal has not actually been filed according to court records.)
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.
اترك تعليقاً