Dr. Phil McGraw’s Merit Street Media, a Texas-based media company, has filed for bankruptcy, citing financial losses and a significant legal dispute with its partner, Trinity Broadcasting. The bankruptcy filing was accompanied by a breach of contract lawsuit, which accuses Trinity Broadcasting of failing to uphold its obligations under the joint venture. The company, which launched Merit TV in 2024, claims that Trinity’s actions have rendered the network unable to distribute its programming.
The lawsuit, filed alongside the bankruptcy proceeding in the U.S. Bankruptcy Court for the Northern District of Texas, alleges that Trinity Broadcasting, referred to as TBN in court documents, has acted in bad faith. The company asserts that Trinity has improperly burdened Merit Street with unsustainable debt, failing to provide the distribution services agreed upon in the contract. Merit Street Media claims that the financial strain has left the company with over $100 million in liabilities, jeopardizing its ability to operate.
Merit Street Media, a joint venture between Peteski Productions and Trinity Broadcasting, was designed to expand national distribution through Merit TV. However, the company alleges that Trinity withheld necessary distribution payments, leading to the network’s inability to broadcast. The complaint highlights a systemic failure in financial stewardship and asserts that the actions of Trinity have resulted in the network’s demise, despite its national acclaim.
In its legal filings, Merit Street has called for damages, legal costs, and further relief as the court may deem appropriate. The case is expected to undergo a detailed audit to uncover the full extent of the financial mismanagement. Trinity Broadcasting has not yet responded to the allegations, leaving the future of the network uncertain as it navigates the bankruptcy proceedings.