Dr. Phil’s Peteski Productions Steps Up for Workers

Dr. Phil McGraw’s Peteski Productions has taken a significant step to support former employees of Merit Street Media by agreeing to pay $925,000 in pre-bankruptcy compensation. This decision comes after Merit Street Media, a joint venture with Trinity Broadcasting, filed for Chapter 11 bankruptcy in July. The company, which launched Merit TV in 2024, is embroiled in a legal battle with Trinity Broadcasting, accusing the network of financial mismanagement that led to its financial troubles.

Legal and Financial Challenges

The bankruptcy filing has been complicated by a lawsuit against Trinity Broadcasting, which specializes in Christian programming. According to the lawsuit, Trinity Broadcasting failed to meet its obligations and misused its position as the controlling shareholder to burden Merit Street with unsustainable debt. This situation has left most former employees without jobs, although a few remain under the supervision of a bankruptcy judge.

Peteski Productions’ Commitment to Employees

In an effort to alleviate the financial strain on former employees, Peteski Productions agreed to loan Merit Street enough funds to cover pre-bankruptcy wages. Initially, the loan amount was insufficient due to a three-week delay requested by Trinity Broadcasting for a key hearing. However, Peteski increased the loan amount to ensure workers were compensated fairly.

Impact on Employees and Future Prospects

Over 150 checks were issued outside of official bankruptcy proceedings, demonstrating Peteski’s commitment to its workforce. Despite these efforts, the majority of former employees remain unemployed as the legal process continues. Merit Street is seeking damages and legal costs from Trinity Broadcasting, hoping for a resolution that could stabilize its financial situation.

Ongoing Legal Proceedings

The bankruptcy filing lists estimated assets and liabilities between $100-$500 million. As the case unfolds, Merit Street aims to secure further relief deemed just by the court. Meanwhile, Trinity Broadcasting has not responded to requests for comment regarding these allegations.