Saturday, April 11, 1998 | 1:53 a.m.
One of the largest time-share developers in the world will pay $15.6 million for 92.5 percent of the stock in the bankrupt Debbie Reynolds Hotel-Casino, Todd Fisher announced Friday afternoon.
David Siegel plans to add 1,000 rooms to the 192-room hotel at 305 Convention Center Dr. and to lease back the gaming and entertainment portion of the facility to Reynolds, according to Fisher, who is the entertainer's son and an executive with her corporation.
"He will run the hotel and we will run the entertainment," said Fisher. "We are going to get back to doing what we do best."
According to Fisher the reorganization plan has been approved by the bankruptcy court, where the case has been since Reynolds and her corporation filed for Chapter 11 bankruptcy protection July 7 of last year.
"This has been a long and difficult process to get through, as all court situations are," said Fisher, calling the agreement with Siegel a "win-win deal."
Siegel plans extensive development of the property, according to Fisher.
The deal will be be finalized in two steps, Fisher said.
One funding deadline is within 30 days and then there is another 30-day deadline.
"Essentially the deal is done. It has been approved and this is the end of it. He put up a substantial amount of money, a million dollars," said Fisher. "We feel pretty good about it."
Reynolds was in Spain when the agreement was reached and had not heard the news when it was announced, though she was on the line holding as Fisher spoke to a reporter.
"This is going to be a major, large exhale for her," Fisher said on behalf of his mother. "She's been sweating this out more than anybody. Much of her net worth is tied up in this."
He said she will continue to perform at the hotel-casino.
Fisher credited broker David Atwell of Resort Properties of America with bringing Siegel to the deal.
Attorney Ara Shirinian, who represents 100 shareholders who filed suit against the hotel, could not be reached for comment after Fisher announced the reorganization agreement late Friday.
Shirinian is among a number of attorneys who represent hundreds of secured and unsecured creditors including investors in the hotel, former employees and area businesses that sold or leased goods to the hotel.
Siegel first made his interest in the property known at a bankruptcy hearing in November.
He was one of two time share operators who wanted to bail out the hotel last year.
A plan by ILX of Phoenix to purchase the property fell through early in the year, forcing Reynolds to file for Chapter 11 bankruptcy.
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