Although its multimillion-dollar legal action against ABC over seemingly shuttered licensed soaps All My Children and One Life To Live continues, Prospect Park Networks today filed for Chapter 11. With creditors such as ABC and the DGA, the online production company made the petition for protection in federal bankruptcy court in 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 today. “The company is optimistic about the prospects for a smooth transition into bankruptcy.” The action today leaves little room for the resurrection of All My Children and One Life To Live in their last online incarnation. After a long-awaited first season online, both soaps ceased production last August.
Today’s move does not affect the Prospect Park management and talent company Jeff Kwatinetz and ex-Walt Disney Studios president Richard Frank formed in 2008, nor will it halt the company’s broadcast and cable productions — Prospect Park currently has Wilfred on FX and Royal Pains on USA Network, with drama Salem debuting on WGN America on April 20. The filing comes just less than four months after Kwatinetz filed a 10-claim complaint against his own company and PPN as well as Boston-based investors ABRY Senior Equity IV, L.P., ABRY Investment Partnership, L.P., and ABRY Senior Equity Co-Investment Fund IV seeking a declaratory judgment over non-compete clauses in a December 31, 2012, employment agreement. That November 21 complaint was later pulled out of the courts as the parties went to work on a private settlement.