Prospect Park Creditors Object to Company's Liquidation Plan

Creditors of production company Prospect Park Networks LLC, which revived former ABC daytime soap operas One Life to Live and All My Children on the web in 2013, say the company's liquidation plan asks them to risk any possible recovery to benefit the company's owners and should be rejected.

The official committee representing Prospect Park's unsecured creditors argued in court documents Thursday that the plan doesn't provide enough information to debt holders tasked with voting on it.

The committee contended the disclosure statement failed to provide enough information about how PPN values its primary asset — a $95 million breach-of-contract suit against the ABC television network — or how that litigation would be handled.

The committee added there was not enough money to cover even administrative costs unless Prospect Park was successful in its lawsuit against ABC.

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* Judge Approves Prospect Park's $6M Sale of Connecticut Tax Credits to Apple

Judge Approves Prospect Park's $6M Sale of Connecticut Tax Credits to Apple

A Delaware bankruptcy judge signed off Monday on the sale of roughly $6 million in Connecticut tax credits to Apple Inc. from Prospect Park Networks LLC (PPN), a liquidating Hollywood production company that tried to revive soap operas One Life to Live and All My Children.

The asset transfer was conducted as a private sale under Section 363 of The Bankruptcy Code with Apple set to pay $5.3 million for the tax credits, with the bulk of the money going directly to secured PPN creditor EP Financial Solutions, which had extended a tax credit loan in June 2013, according to court records.

The sale was scheduled to be considered in Wilmington on Monday before U.S. Bankruptcy Judge Mary. F. Walrath, but the hearing was canceled after the court simply entered an order approving the unopposed motion.

“This sale order and the consummation of the sale of the tax credits are supported by good business reasons and will serve the best interests of the debtors, its estates and creditors by maximizing the value obtained,” the order said.