Dr. Phil Media Venture Will Shift to Trustee-Run Liquidation (3)

The bankruptcy of Dr. Phil McGraw’s fallen media venture will be taken over by an independent trustee after a judge found the daytime television host intentionally destroyed a key text message, then denied it under oath in court.

Merit Street Media Inc.'s Chapter 11 bankruptcy reorganization proceeding will be converted into a Chapter 7 liquidation in part due to McGraw’s destruction of discovery, Judge Scott W. Everett said during a hearing Tuesday in the US Bankruptcy Court for the Northern District of Texas.

The ruling is a win for Merit Street’s Christian broadcast partner, Trinity Broadcasting Network, and creditor Professional ...