Overview
- U.S. Bankruptcy Judge Scott W. Everett converted Merit Street’s Chapter 11 case to Chapter 7, finding no realistic path to reorganization.
- A trustee will sell the company’s assets, including its media library, and oversee related litigation tied to the failed TBN deal.
- The court cited a deleted text about wiping out claims by Trinity Broadcasting Network and Professional Bull Riders as proof of bad faith.
- Findings indicated plans to move employees and assets to McGraw’s new venture, Envoy Media, undermining the Chapter 11 bid.
- Peteski Productions said it will appeal the ruling as major creditors including PBR, which claims about $181 million, welcomed the conversion.