Dr. Phil’s Production Company to Compensate Former Employees Amid Bankruptcy Proceedings
Dr. Phil McGraw’s Petesky Productions has announced its decision to voluntarily compensate former employees of Merritt Street Media for work completed prior to the company filing for bankruptcy. This step comes as legal proceedings continue.
Founded in 2023 and starting operations with Merit TV in 2024, Merritt Street Media was a collaboration between McGraw’s Petesky Productions and Trinity Broadcasting. The latter filed for Chapter 11 bankruptcy in July and subsequently launched a lawsuit against a network focused on Christian programming.
A memo from Peteski’s attorneys to former staff indicates that the production company has pledged financial support to ensure that workers are fully compensated for their pre-bankruptcy contributions. Initially, the loan amount was insufficient since Trinity Broadcasting successfully requested a three-week postponement of critical hearings. However, Peteski increased the funding to meet the obligation to their employees.
“Our priority throughout this has been taking care of our workers. We expected the compensation matter to be clarified at the July 29 hearing, but TBN’s request for a delay highlighted the pressing needs of our team,” noted the memo.
In total, over 150 checks summing up to $925,000 were issued outside of official bankruptcy procedures.
Additionally, McGraw has committed to supplying new episodes of “The Dr. Phil Show,” along with Primetime Specials and other content, although Trinity Broadcasting was supposed to provide assistance with distribution and production, as noted in a lawsuit contesting the bankruptcy claim against Christian Broadcasting.
Merit Street Media has alleged that Trinity Broadcasting has failed to meet its responsibilities and claims it has created an unfair burden as the primary shareholder.
While most former employees of Merritt Street Media have vacated their positions, a few remain under the supervision of the bankruptcy court. The bankruptcy filing indicates estimated assets and liabilities ranging between $100 million and $500 million. Merit Street is seeking damages, legal expenses, and any additional relief the court deems appropriate.
Trinity Broadcasting has yet to respond to requests for comments regarding this situation.
