When MinistryWatch first reported on the collapse of Dr. Phil McGraw’s Merit Street Media last July, the network had just filed for Chapter 11 bankruptcy and sued Trinity Broadcasting Network (TBN), its majority owner.
Video screenshot / Dr. Phil Primetime from July 8, 2025
The lawsuit accused TBN of sabotaging the venture and failing to meet its financial and distribution obligations. Merit Street launched Merit TV in 2024 as a joint venture between McGraw’s Peteski Productions and TBN, promising a major new cable and streaming platform built around Dr. Phil Primetime and other celebrity-driven programming.
The complaint also claimed that TBN’s production services were “comically dysfunctional,” citing teleprompter blackouts, malfunctioning monitors, and faulty video-editing equipment.
But the fight has since moved beyond Merit Street’s claims against TBN.
On Nov. 18, 2025, the bankruptcy court converted Merit Street’s case from Chapter 11 reorganization to Chapter 7 liquidation. The ruling shifted control of the estate away from McGraw, Peteski Productions, and Merit Street management and placed it under Chapter 7 trustee Daniel J. Sherman.
Judge Scott Everett rejected Merit Street and Peteski’s effort to retain control, finding the company was already headed toward liquidation and that a neutral trustee should oversee the sale of its media library and the handling of estate claims.
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In his memorandum decision, Everett wrote that McGraw was “already moving the business to Envoy” before the bankruptcy filing — referring to the company McGraw had set up “to buy the Debtor’s business and acquire its assets and many of its employees.”
TBN and its affiliate, TCT Ministries, argued that Merit Street’s estate should be placed under an independent trustee rather than remain under McGraw and Peteski’s control. The memorandum also notes that Professional Bull Riders partially joined TBN/TCT’s motion, supporting the appointment of an independent Chapter 7 trustee. PBR separately claims Merit Street owes it $181 million.
Everett essentially concluded that Merit Street had become a company with little left to do except sell its media library and litigate claims, making Chapter 11 reorganization unrealistic.
The ruling did not decide Merit Street’s allegations that TBN sabotaged the network, nor did it resolve TBN’s counterclaims alleging that McGraw and Peteski committed fraud and breached their contract.
The ruling did, however, mark a significant procedural victory for TBN in the fight over who controls what remains of the failed media venture.
McGraw, meanwhile, has launched Envoy Media, a separate venture announced two weeks after Merit Street filed for bankruptcy. Though Merit Street has not formally rebranded, McGraw has since focused his media efforts on Envoy as the next chapter of his media business.
Envoy has since secured distribution through Charter/Spectrum, FAST platforms, and a partnership with PodcastOne/LiveOne. It continues producing new content, including a six-episode Greenland docuseries slated for late summer 2026.
Merit Street Media, McGraw, and Peteski Productions have appealed the bankruptcy court’s decision converting the case to Chapter 7. McGraw and Peteski also filed a separate mandamus petition challenging Everett and other parties. TBN/TCT have moved to dismiss it.
For now, the conversion remains in effect and the estate remains under trustee administration. TBN has not publicly commented on the dispute beyond its court filings. TBN and TCT have continued to defend the Chapter 7 process and object to the disbursement of estate funds without review by Trustee Daniel Sherman.
In the MinistryWatch database, TBN has 3 stars for financial efficiency, a Transparency Grade of D and a Donor Confidence Score of 45 (Withhold Giving).
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