Dr. Phil McGraw has lost a court battle over his media startup’s bankruptcy, according to the Hollywood Reporter , amid allegations that he stripped the company to launch a new venture.

U.S. Bankruptcy Judge Scott Everett on Tuesday rejected McGraw’s attempt to keep the case in Chapter 11, which would have allowed him to maintain control of the bankruptcy process.

The case will now proceed as a Chapter 7 liquidation, with a trustee overseeing the sale of Merit Street’s assets and related litigation, according to the Hollywood Reporter.

The court’s decision highlighted evidence suggesting McGraw deleted text messages and attempted to manipulate the bankruptcy by favoring certain creditors over others.

“Candor to the court is critical,” Everett said in his bench ruling, adding that McG

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