A federal judge ordered that the bankruptcy case filed by Dr. Phil McGraw’s Merit Street Media be converted to a Chapter 7 liquidation, saying that the Trump-backing celebrity TV psychologist showed a lack of candor by deleting incriminating text messages that revealed a scheme to pay “favored creditors.”
According to Bankruptcy Judge Scott Everett, “there is no hope for rehabilitation” for McGraw’s Chapter 11 bankruptcy filing, and Merit Street would therefore need to go into “liquidation mode” going forward. The change allows the court to sell off the assets of the failed TV network in order to repay companies what they claim is owed.
