On July 3, 2025, a Sidley team represented Texas-based television and digital media company Merit Street Media, Inc. (“Merit Street”) in its Chapter 11 filing in the United States Bankruptcy Court for the Northern District of Texas. In conjunction with the Chapter 11 filing, Merit Street filed an adversary proceeding against Trinity Broadcasting of Texas, Inc. for its breach of obligations under a joint venture agreement and an avoidance of a US$25 million lien as a preferential transfer under the Bankruptcy Code.
Merit Street owns and operates a national television and streaming network, which includes content production and programs anchored by high-profile personalities.
The Sidley team successfully negotiated, in coordination with the Chapter 11 filing, debtor-in-possession-financing in the amount of US$21.4 million from Peteski Productions, Inc. At Merit Street’s “first day” hearing, the company received all requested relief, including an expedited schedule for a related adversary proceeding regarding avoidable preference. Merit Street intends to utilize this funding and the bankruptcy case to effectuate a value maximizing sale process and resolve commercial disputes.
The team included Stephen E. Hessler, Jeri Leigh Miller, Patrick Venter, Weiru Fang, Parker G. Embry, Chelsea McManus, Hayden Ross Goleman, Nicholas S. Forger, Hyeisoo Kim, and Zoe Stern, (Restructuring); Jim Ducayet and Steven E. Sexton (Securities and Shareholder Litigation); Andrew F. Rodheim and James P. Mooney (Commercial Litigation and Disputes); Kelly M. Dybala and John E. Cupit V (Global Finance); and Courtney N. Luster and Kelly Katherine Ball (M&A).
