Dr. Phil Media Venture Lawyers Lose Bid to Exit Bankruptcy (1)

Lawyers for Dr. Phil McGraw’s media venture were denied their request to withdraw as bankruptcy counsel as the company looks to end its Chapter 11 proceeding.

Sidley Austin LLP’s request came as Merit Street Media Inc. heads into thorny and expensive fights with broadcast partners.

“The estate professionals are left in an untenable position where continued administration of the Chapter 11 Case exposes them to unreasonable and unjustifiable financial burden and risk,” Merit Street said in court papers Monday.

Although there’s a risk Sidley Austin may not be fully compensated for representing Merit Street, the company would be adversely affected ...