Even though Prospect Park Networks has filed for bankruptcy, ABC is seeking "to recover all unpaid Series Fees owed" to it from the company's licensing of All My Children and One Life to Live.
According to a cross-complaint filed by ABC last week, ABC claims that it would have earned more than $145 million in fees from their multi-season agreement with Prospect Park.
"ABC sues to recover all unpaid Series Fees owned up to and through the date of the trial of this action as a result of Prospect Park's failure to pay in breach of the License," ABC said in its cross-complaint filed March 7 in Superior Court of California (Los Angeles County).
ABC's filing also revealed the fee structure that Prospect Park was to have paid for the rights to the two long-running soaps: $4 million for each of the first three seasons on One Life to Live, and $4.5 million for each of the first three seasons of All My Children. Fees were to increase through the end of the 15-season contract, and payments were to be paid monthly, but ABC states that Prospect Park hasn't made payments as agreed. ABC acknowledges that Prospect Park paid all the licensing fees for both soaps in April, May, and June 2013, but in June and July 2013 paid only the fees for All My Children. No payments have reportedly been made since July 2013.
To date, ABC estimates that their actual damages are in excessive of $5 million.
"We value the history and the legacy of both All My Children and One Life To Live. They are television institutions," an ABC spokesperson told Deadline.com. "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."
Prospect Park has acknowledged owing ABC money to the tune of $1.7 million. That figure was provided by Prospect Park in its Chapter 11 bankruptcy filing earlier this week.
ABC's countersuit comes in response to an amended lawsuit filed by Prospect Park in November 2013, seeking more than $95 million in damages from ABC for breach of contract and promissory fraud.
In February, a judge denied ABC's request to strike a key part of Prospect Park's lawsuit that asks for the licensing period to be extended and for fees to be waived while the two parties are in litigation.