Celebrity television personality and producer Dr. Phil McGraw has suffered a major courtroom defeat over the fate of his failed television network, Merit Street Media. A federal bankruptcy judge has ruled that McGraw’s company will be liquidated under Chapter 7, rejecting his attempt to reorganize it through Chapter 11 protection. The decision ends Merit Street’s short, chaotic life and caps an extraordinary $500 million collapse for a venture once touted as the next stage of Dr. Phil’s media empire.
Importantly, this ruling does not mean Dr. Phil has filed for personal bankruptcy. The case involves a corporate bankruptcy, not his individual finances. McGraw remains personally very wealthy, with a net worth of $400 million, built over…