Judge Orders Dr. Phil’s Media Network Into Chapter 7

A federal bankruptcy judge in Texas has stripped control from talk-show host Dr. Phil’s Merit Street Media and ordered the network into Chapter 7 liquidation, siding with religious broadcaster Trinity Broadcasting Network in a fast-escalating legal battle over who ultimately controls the Christian-facing TV venture.

U.S. Bankruptcy Judge Scott W. Everett ruled Tuesday that a court-appointed trustee, not Phil McGraw, must take control of the embattled enterprise to protect key creditors.

Everett said Chapter 7 was the only option that could ensure a fair outcome to creditors, concluding Merit Street was “dead as a doornail” when it filed for bankruptcy in July.