Dr. Phil’s Peteski Productions Disburses $925K to Merit Street Media Employees Amid Bankruptcy

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Peteski Productions, led by television host Dr. Phil McGraw, has paid $925,000 to former employees and contractors of Merit Street Media following its Chapter 11 bankruptcy filing in July 2025. Launched in 2023 as a joint venture with Trinity Broadcasting Network (TBN), Merit Street Media debuted Merit TV in 2024 but faced financial collapse, prompting a lawsuit accusing TBN of causing unsustainable debt. Peteski voluntarily loaned funds to ensure workers received pre-bankruptcy compensation, distributing payments to over 150 individuals outside formal bankruptcy proceedings, as reported by Fox News Digital.

Merit Street Media aimed to deliver family-friendly and Christian-oriented programming, with McGraw providing “The Dr. Phil Show” episodes, primetime specials, and additional content, while TBN handled distribution and production, per the lawsuit. The legal action claims TBN, as the controlling shareholder, failed to meet obligations and imposed crippling debt without notice, violating prior assurances. Court documents estimate Merit Street’s assets and liabilities between $100 million and $500 million. The company seeks damages, legal costs, and further relief, holding TBN accountable for the bankruptcy that left most employees jobless.

Peteski’s attorneys detailed the payment plan in a memo to former workers, noting that an initial loan fell short after TBN delayed a key July 29 hearing by three weeks. Peteski increased the loan to cover full compensation. “As this process has played out, one of our top priorities has been to do whatever we can for the workers. … In light of the real needs of the workers for this to be resolved, we felt this was the right thing to do,” a Peteski spokesperson told Fox News Digital. The $925,000 payment supported over 150 staff, including writers and producers, amid the venture’s collapse.

The bankruptcy has left most Merit Street employees unemployed, with only a few retained under a bankruptcy judge’s oversight. The lawsuit highlights TBN’s alleged mismanagement, which crippled Merit Street’s operations within a year of Merit TV’s launch. The case underscores the risks of media ventures reliant on partnerships, particularly when financial disputes arise. Peteski’s payment initiative aims to ease the burden on workers, many of whom faced sudden job loss in a competitive industry.

Dr. Phil, known for his straightforward approach on television, has faced scrutiny over Merit Street’s failure, but Peteski’s proactive payment plan reflects a commitment to supporting affected workers. The ongoing lawsuit against TBN, a prominent Christian broadcaster, reveals tensions in their partnership, with Merit Street alleging deliberate financial sabotage. As legal proceedings continue, the payments offer immediate relief to employees, though the broader dispute’s resolution remains uncertain, impacting the reputation of both McGraw and TBN.

The collapse of Merit Street Media raises concerns about the sustainability of niche media ventures, especially those tied to faith-based programming. Peteski’s decision to act swiftly outside bankruptcy channels demonstrates a focus on fairness for workers, contrasting with the contentious legal battle. The outcome of the lawsuit could influence future media partnerships, while the payments provide a critical buffer for those navigating the fallout of Merit Street’s abrupt end.