LOS ANGELES (CelebrityAccess MediaWire) — Prospect Park co-founder Jeff Kwatinetz is taking his own company, as well as private equity investor Abrt Partners to court over the non-compete clause in his contract.
According to Deadline Hollywood, Kwatinetz claims that the non-compete clause in the new contract under the terms of the ABRY investments includes an “unenforceable non-competition and non-solicitation provision” that would require Kwatinetz to work for the firm for at least five years, sans competition or face a $5 million “damages penalty.”
Kwatinetz teamed up with former Walt Disney Studios exec Frank Rich to launch Prospect in 2008. In 2012, the company received an infusion of capital from a trio of private equity funds overseen by ABRY for a project to revive several fallen ABC soap operas as internet television shows
If Kwatinetz is attempting to exit Prospect or simply re-negotiate that element of his contract is unclear and he remains CEO of the firm. Reps for Prospect Park and Abry partners were unavailable for comment. – Staff Writers