DR. PHIL CONSIDERS APPEAL AFTER LOSING BANKRUPTCY CASE OVER CHRISTIAN NETWORK DEAL. (PHOTO).

 Dr. Phil considers appeal after losing bankruptcy case over Christian network deal

A federal judge ruled Tuesday that Dr. Phil cannot wipe out the debts of his now-defunct Merit Street Media through Chapter 11 bankruptcy, stemming from his multi-million-dollar deal with Trinity Broadcasting Network. U.S. Bankruptcy Judge Scott Everett ordered that the proceedings be converted to a Chapter 7, with the company’s assets sold to repay creditors.

Judge Everett criticized McGraw for a lack of transparency during the trial and noted erased communications and preferential payments to certain creditors. He described Merit Street Media as “as dead as a doornail” at the time the bankruptcy was filed, suggesting that McGraw had been using one business to fund another.

The ruling follows a trial over the failed $500 million deal between Dr. Phil and TBN. Merit Street Media filed for Chapter 11 in July, while TBN countersued in August, accusing McGraw of misconduct and attempting to evade financial obligations. TBN praised the ruling, saying it looked forward to having a Chapter 7 trustee manage the liquidation. Professional Bull Riders, another creditor, also welcomed the decision, noting that the court prevented Dr. Phil from using bankruptcy to avoid payments owed.

Representatives for Dr. Phil disagreed with the ruling, calling him “a leader of the highest integrity” and stating that an appeal is likely. Later in the day, Peteski Productions, McGraw’s company, confirmed that an appeal would be filed, denying allegations of evidence destruction and defending Dr. Phil’s management of Merit Street.

Meanwhile, McGraw has shifted focus to his new venture. Earlier this month, he announced a carriage agreement with Charter for his newly launched Envoy TV network, which will be available to 12.6 million potential subscribers in 41 states through Spectrum TV Select packages.