Chapter 11

“It’s not a routine Chapter 11 case,” a lawyer for lenders that have agreed to provide First Brands with more than $1 billion in emergency debtor financing told the judge.

Reorganization under the protection of Chapter 11 of the bankruptcy code eventually emerged as the best option.

Six years ago, the company, previously known as Clear Channel, emerged from a Chapter 11 bankruptcy proceeding designed to restructure more than $10 billion in debt, reducing its obligations to $5.75 billion.

On July 2, the company filed for Chapter 11 bankruptcy—and sued Trinity Broadcasting, claiming that the distributor caused Merit to “lose its national distribution by withholding payments,” forcing McGraw’s network to seek third-party distributors and putting it on the hook for nearly $100 million.

In early August, Professional Bull Riders objected to the bankruptcy in court and cited Envoy in accusing Dr. Phil of “orchestrating” the Chapter 11 motion to avoid paying debts.