Filing Alert: Merit Street Media Chapter 11
Merit Street Media Files Chapter 11 in Northern District of Texas
Merit Street Media, Inc. ("Merit Street"), a Fort Worth, TX-based television network and streaming-media company founded by TV host Dr. Phil McGraw, filed for Chapter 11 protection on Jul. 2 in the U.S. Bankruptcy Court for the Northern District of Texas.
The filing follows an acrimonious dispute with Trinity Broadcasting Network of Texas, Inc. ("TBN"), Merit Street’s 29% equity holder, which the debtor alleges breached commitments to provide free nationwide carriage and production services for the Dr. Phil–anchored MeritTV channel. TBN’s alleged defaults forced the company to absorb approximately $96 million in carriage costs, initiate reductions-in-force impacting about 71 employees, and led Dr. Phil’s production company, Peteski Productions, Inc. (“Peteski”), to provide over $32 million in emergency loans while also defending a $3.5 million arbitration claim from Professional Bull Riders ("PBR").
Merit Street enters Chapter 11 with a $21.4 million DIP term loan from Peteski, comprising $13.4 million of new-money funding and a $7.9 million roll-up of prepetition bridge loans, and plans to market its broadcast assets and IP while pursuing fraud and preference claims against TBN and PBR.
The company reports $100 million to $500 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-80156.
Initial DIP Budget
Top Unsecured Claims
Key Parties
Counsel:
- Thomas R. Califano
- Sidley Austin LLP
- Email: tom.califano@sidley.com
Financial Advisor:
- Triple P TRS, LLC
Investment Banker:
- Triple P Securities, LLC
Signatories:
- Gary Broadbent – Chief Restructuring Officer
Claims Agent:
Equity Security Holders:
- Peteski Productions, Inc. – 66.5% Equity Interest
- Trinity Broadcasting Network of Texas, Inc. – 28.5% Equity Interest
- SHG Partnership, LLC – 5.0% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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