Merit Street Media, the cable-TV and streaming network launched by television personality Phil McGraw in April 2024, entered Chapter 11 protection on 2 July in the U.S. Bankruptcy Court for the Northern District of Texas. Court papers list both assets and liabilities in the $100 million to $500 million range and name more than 200 creditors. Bloomberg reported that the Fort Worth-based company dismissed all but six staff members on the day of the filing. Filed simultaneously with the bankruptcy petition, Merit Street sued its controlling shareholder and distribution partner Trinity Broadcasting Network, accusing the Christian broadcaster of breach of contract, fiduciary duty and good-faith obligations. The complaint says TBN withheld payments that were supposed to secure national carriage, forcing Merit Street to sign $96 million in third-party distribution deals and to assume debts that eventually topped $100 million. Merit Street also claims TBN provided “comically dysfunctional” production facilities, including failing teleprompters and inadequate control-room equipment, and that the loss of reliable distribution left the network “nowhere to send its broadcast signal.” The company is seeking damages, cost recovery and equitable subordination of TBN’s claims in the bankruptcy proceedings. The joint venture between McGraw’s Peteski Productions and TBN was conceived after the long-running “Dr. Phil” daytime show ended in 2023. Merit Street reached about 80 million homes at launch but has struggled to raise capital and retain programming partners; Professional Bull Riders withdrew its events last year over unpaid rights fees, and two rounds of layoffs preceded the bankruptcy. Merit Street says it will continue limited operations while it restructures.