Prospect Park Networks (PPN), the producer of the online versions of All My Children and One Life to Live, has filed for Chapter 11 bankruptcy in the U.S. District of Delaware.
"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 said in a statement. "The company is optimistic about the prospects for a smooth transition into bankruptcy."
After the 2011 cancellation of All My Children and One Life to Live, Prospect Park secured the rights to the two soaps and announced plans to take both series online. It took more than a year for Prospect Park's dreams to become a reality.
Production on both shows began in early 2013 and approximately 40 episodes of each were eventually produced before Prospect Park indefinitely suspended production on both shows. Prospect Park filed a multimillion-dollar lawsuit against ABC, claiming that ABC sabotaged its efforts to keep the soaps alive.
"The Chapter 11 filing in no way impacts PPN's litigation against the American Broadcasting Companies, Inc," Prospect Park added. "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."
How bad are Prospect Park's money woes? According to the company's bankruptcy filing, obtained by soapcentral.com, Prospect Park's debts total more than $3.7 million. Prospect Park owes $1.7 million in licensing and other fees to ABC, and $750,000 to the law firm that is handling its lawsuit against ABC. $345,000 is owed to the Connecticut Film Center (where AMC and OLTL were taped) and $565,000 to NEP Broadcasting, a company that provides production services. Prospect Park also owes money to the Directors Guild ($50,000) and the Screen Actors Guild ($86,000)
In addition, Prospect Park owes a substantial amount of money to actors -- $205,000 to One Life to Live's Erika Slezak (Viki Buchanan) and $60,000 to her co-star Tuc Watkins (David Vickers)
Prospect Park's talent and management company is not impacted by the bankruptcy filing.