Monday, April 13, 1998 | 10:17 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, hotel executive Todd Fisher announced last week.
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."
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. Creditors will get $15.6 million for the more than $20 million in debt they claimed. The resort will leave bankruptcy protection when Siegel's payment is made.
"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.
"He has a plan to add up to 1,000 rooms on the property," said David Atwell, a local real estate broker who was appointed exclusive broker on the Debbie Reynolds property by the bankruptcy court.
Siegel's Westgate Resorts, based in Orlando, Fla., is the most profitable time-share developer in the country, Atwell said, though not the biggest in terms of volume.
The majority of the 1,000 new rooms will be time-share units that can also be sold as hotel rooms, Atwell said. The plan is part of Siegel's commitment to protect the investments of the hotel's current 13,000 time-share investors, Atwell said.
The deal will be finalized within 60 days, Atwell said. Siegel has 30 days to perform due diligence on the property, and 30 additional days to pay. When Siegel makes his payment, the hotel will leave bankruptcy, Atwell said.
"Essentially the deal is done," Fisher said. "It has been approved and this is the end of it. He put up a substantial amount of money, a million dollars. We feel pretty good about it."
"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 Atwell 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 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.
Siegel was not the exclusive bidder for the property at Friday's bankruptcy hearing. He found himself competing against Saylor Kennedy's Capstar Hotel Co.
"David just flat-out out-bid him," Atwell said.
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