Prospect Park Motions For Chapter 7 Bankruptcy After OLTL And AMC Reboots Flop On Hulu

Prospect Park Networks is still in the middle of a nasty lawsuit with ABC over the rights to the internet flops “One Life To Live” and “All My Children.” Meanwhile, the creditors that invested millions in the project to revive the cancelled soaps – want their money back. To add insult to injury, not only is Prospect Park’s lawsuit stalling, and they are not turning any profits – they can’t even afford to pay their own lawyer!

According to a new report from Soap Opera Digest, Prospect Park has submitted a new motion to have their Chapter 11 bankruptcy switched over to a Chapter 7 claim. Prospect Park grounds for filing Chapter 7 bankruptcy is that their legal counsel Jones Day has jumped ship because they could not pay the lawyer’s service fees. By switching over to Chapter 7 bankruptcy, Prospect Park could have their debts cancelled – rather than liquidating the entire estate. The network made a last ditch attempt to save their assets by selling off $6 Million in tax credits – but it didn’t even put a debt in their mounting bills.

In the motion submitted by Prospect Park it reads that they have found the company, “administratively insolvent because the outstanding and unpaid fees awarded to estate professional exceeds the amount of cash the Debtor has on hand.” It is not looking good for Prospect Park right now, or all of the creditors that have lost an arm and a leg in the short lived revival of “One Life TO Live” and “All My Children.”

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