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‘This Chapter 11 case is an anomaly” since ‘there never has been a pretense of a rehabilitation or a reorganization’ of Merit Street, a bankruptcy judge said this week.
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A federal judge ordered that the bankruptcy case filed by Dr. Phil McGraw’s Merit Street Media be converted to a Chapter 7 liquidation, saying that the Trump-backing celebrity TV psychologist showed a lack of candor by deleting incriminating text messages that revealed a scheme to pay “favored creditors.”
