Prospect Park Networks, which last year launched new version of daytime soap operas ONE LIFE TO LIVE and ALL MY CHILDREN online before becoming embroiled in a legal dispute with ABC, announced that it has filed for bankruptcy protection. The company provided additional details in the statement below:
STATEMENT FROM PROSPECT PARK NETWORKS
Prospect Park Networks, LLC (“PPN”) today announced that it has filed a voluntary petition for protection under Chapter 11 of the U.S. Federal Bankruptcy Code in the District of Delaware. Prospect Park, the talent and management company, is unrelated to PPN and not included in the bankruptcy filing.
PPN produced “One Life to Live” and “All My Children” and in August 2013, PPN ceased production on the programs.
The Chapter 11 filing in no way impacts PPN's litigation against the American Broadcasting Companies, Inc. In addition, the bankruptcy filing will allow PPN the timing flexibility to collect on a tax credit from the Connecticut Office of Film, Television & Digital Media.
PPN is optimistic that this filing will make it possible to continue to maximize the value of its assets and settlement of past liabilities. The company is optimistic about the prospects for a smooth transition into bankruptcy.
Meanwhile, ABC filed a cross-complaint last week over Prospect Park's failure to pay the licensing fees it owes to ABC for the rights to AMC and OLTL. ABC claims that its overall licensing agreement with PP entitles it to more than $145 million (a number that greatly exceeds the debt Prospect Park claims to owe ABC in its bankruptcy filing, $1.7 million). ABC says that PP should have paid the network a total of $8.5 for the first seasons of AMC and OLTL but has only paid a portion of this fee (paying only what was owed through April, May and June, then paying the AMC fee for July and August but nothing for OLTL and nothing for either show since). ABC claims to have "suffered damages of not less than $5 million" as a result and is asking for compensatory damages and legal fees. A network rep stated, “We value the history and the legacy of both ALL MY CHILDREN and ONE LIFE TO LIVE…. Prospect Park has the exclusive rights to these programs. It was their decision to discontinue producing new episodes online thereby disappointing fans. Prospect Park has not honored their agreement with ABC.”
RELATED:
- ABC Responds to Prospect Park Lawsuit, Does Not Want License Extended on ALL MY CHILDREN & ONE LIFE TO LIVE
Not unexpected.
ReplyDelete