Wrestlers’ purchase of Debbie Reynolds delayed

John Wilen

Thursday, Aug. 20, 1998 | 11:25 a.m.

The World Wrestling Federation won a significant round in its battle for control of the Debbie Reynolds hotel-casino Wednesday, but was also told it will have to wait another week to complete its purchase of the resort.

Federal Bankruptcy Court Judge Robert Clive Jones denied Florida time-share developer David Siegel's attempt to make a new offer for the Debbie Reynolds. Siegel last week offered $11.5 million for the resort, which is near the Las Vegas Strip.

This was despite an affidavit filed by Gov. Bob Miller supporting Siegel's effort to make a higher bid. Miller's affidavit said getting the highest price possible for the resort would be in the best interest of Nevadans.

Two weeks ago, Jones approved the resort's sale to a joint venture headed by the WWF for $10.65 million. Wednesday, Jones ruled he could not overturn that decision and reopen bidding for the property without evidence of fraud, a mistake or an inadequate offer.

Because Debbie Reynolds' creditors accepted the WWF offer, and because Siegel passed on an earlier chance to up the WWF bid, it would not be fair to the WWF to re-open bidding, Jones said.

"I intend to bind myself ... and I also intend to bind the parties that spoke," Jones said. "If you can't trust the bankruptcy court, there's no institution you can trust."

However, Jones also gave lawyers for Siegel and the Debbie Reynolds an additional week to appeal his decision to U.S. District Court. The decision means the WWF purchase cannot be completed before 9 a.m. Aug. 27.

Robert Chapman, a Siegel attorney, said an appeal would be filed within a day. However, Lenard Schwartzer, an attorney for the Debbie Reynolds operating company, said the company will not join the appeal.

The Debbie Reynolds doesn't believe another judge would overturn Jones' ruling, and wants the resort sold as soon as possible to avoid running up more interest on the its debt, Schwartzer said.

WWF representatives were elated with Jones' decision.

"We're very excited with the judge's decision," said Ed Kaufman, senior vice president and general counsel of the WWF.

"We're very happy with today's results," said George Simon, a restaurateur and principal of 905 Parkview Group LLC, minority partner in the WWF joint venture.

Kaufman said Siegel's attempts to submit new bids for the Debbie Reynolds were a waste of creditor time and money.

"We would much prefer to spend our time and effort ... working on a transition and injecting some WWF attitude," Kaufman said. "We want to add jobs and opportunity to this community."

The WWF will keep as many of the Debbie Reynolds' 20 employees on as possible, Kaufman said. Both Kaufman and Simon declined to reveal specific plans for the property. Kaufman previously said it would become "The World Wrestling Federation Hotel."

The WWF is a dba of Titan Sports Inc., of Stamford, Conn.