March 10, 2014 3:01pm PT by Alex Ben Block
Prospect Park Network Declares Bankruptcy
Prospect Park Network, which relaunched the TV soap operas One Life to Live and All My Children online in 2013, filed for bankruptcy Monday in Delaware.
Prospect Park’s talent and management company, which represents clients including Ice Cube and the band Korn, and has an active TV production arm that has made such shows as Royal Pains, is not part of the bankruptcy and continues to operate normally.
The bankruptcy also does not impact Prospect Park Network’s lawsuit against the ABC network that was filed in L.A. Superior Court last April.
In the suit, PPN seeks at least $25 million from ABC for allegedly sabotaging the relaunch of the series online. ABC had originally licensed the soaps, which previously had been on the network, to the company after they were canceled.
At the time, a spokesperson for Prospect Park founders Rich Frank and Jeff Kwatinetz had said they would not attempt to resume production on the soap operas until after the legal case with ABC was settled. That case continues through the legal process.
In an announcement about the filing, Prospect Park Network said the bankruptcy filing also will “allow PPN the timing flexibility to collect on a tax credit from the Connecticut Office of Film, Television & Digital Media.”
There was one season of each of the soap operas produced at a studio in Connecticut, where it was located in part to take advantage of the state’s incentives to attract movie and TV productions.
In announcing the bankruptcy, PPN said it remains “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.”