Case filing & court posture: Merit Street Media, Inc. filed Chapter 11 on July 2, 2025, in the Northern District of Texas (Case No. 25-80156), Judge Scott W. Everett presiding. Dkt. 1 The debtor operated MeritTV, a multicast television network and streaming service owned by Peteski Productions (Dr. Phil McGraw, 66.5%) and Trinity Broadcasting Network (28.5%). The filing followed disputes with TBN over carriage infrastructure and termination of a Professional Bull Riders media rights agreement.
Liquidity & financing path: The debtor obtained interim DIP financing from Peteski Productions of up to $21.4 million, including $13.4 million in new money at 8% PIK interest. Dkt. 35 The case proceeded with substantial litigation against TBN and PBR, including adversary proceedings and discovery disputes. Dkt. 11
Conversion to Chapter 7: TBN filed an emergency motion to dismiss or convert the case, alleging bad faith filing, evidence destruction, and lack of reorganization prospects. Dkt. 100 On November 18, 2025, the bankruptcy court granted the motion and converted the case to Chapter 7. Daniel J. Sherman was appointed Chapter 7 Trustee.
Current status: Multiple appeals remain pending, with the District Court granting an administrative stay on November 25, 2025. The debtor, Peteski Productions, and Dr. McGraw filed notices of appeal challenging the conversion order. Dkt. 634, Dkt. 636 The case remains in Chapter 7 pending appellate resolution.
