Prospect Park Owes ABC $1.7 Million
In its Chapter 11 bankruptcy filing, the soaps producer lists its biggest creditors.
Prospect Park Network, which relaunched the TV soap operas One Life to Live and All My Children online in 2013, owes $1.7 million to ABC, according to the company's Chapter 11 bankruptcy filing on Monday.
The company is in the midst of a lawsuit alleging a "mega soap" fraud on the part of ABC. Prospect Park claims that after licensing the soaps from the network, ABC had second thoughts and attempted to sabotage the relaunch by borrowing characters to kill them off and inducing actors to sign secret, exclusive, multiyear contracts.
The litigation is expensive.
According to the Chapter 11 filing, the law firm of Andrews Kurth, which is representing Prospect Park in the ABC fight, is owed $750,000. The law firm of Lavely & Singer is also doing work on the lawsuit. It is owed more than $112,000.
In total, Prospect Park lists at least $50 million in assets and at least $10 million in liabilities. The company also has a talent and management division, 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. In its filing, Prospect Park also says it owes about $86,000 to the Screen Actors Guild and about $50,000 to the Directors Guild. The company also reports money owed to others in the entertainment community including $205,000 to OLTL actress Erica Slezak and $76,000 to showrunner Brenda Hampton.
In the lawsuit against ABC, Prospect Park is seeking $95 million in damages. The plaintiff also demands a declaration that Prospect Park's continued payment of the licensing fees under the agreement be excused and that its license agreement be tolled.
ABC attempted to have a judge strike those demands from Prospect Park's complaint, but at a hearing in February, the judge denied ABC's motion.
As Prospect Park was readying its bankruptcy filing, ABC got an extension to file an answer to Prospect Park's lawsuit. There's also some indication that a cross-complaint could be coming.