Dr. Phil’s Merit Street Media and his wholly-owned company that is also the DIP lender — Peteski Productions have both filed motions seeking a stay pending appeal of Judge Scott Everett’s recent bench ruling finding cause to convert the case to Chapter 7.

In its stay motion, the debtor summarizes that after “months of severe financial distress and “mounting threats of litigation by creditors,” it decided — through its CRO, Gary Broadbent — to file for chapter 11 on 2 July 2025 because “it was in the best interest of Merit Street, its creditors, and other parties in interest.” The debtor further states that after filing bankruptcy, it negotiated a Chapter 11 plan that would provide unsecured creditors with a meaningful recovery that was more than what they could recover in a chapter 7.

The debtor avers that the UCC supported its Chapter 11 plan but two of its creditors — Trinity Broadcasting Network of Texas, Inc. (TBN) and Professional Bull Riders, LLC (PBR) — sought dismissal or conversion of the case and declined to participate in Chapter 11 plan negotiations. On 28 October 2025, the court issued a bench ruling finding cause to convert the case to chapter 7 but delayed entry of the conversion order after the debtor requested the opportunity to seek a stay of pending appeal prior to the appointment of a Chapter 7 trustee.

The debtor and Peteski assert in their motions for stay pending appeal that the following factors weigh in favor of granting a stay: