Wrestlers win Debbie Reynolds resort

John Wilen

Friday, Aug. 21, 1998 | 11:01 a.m.

The World Wrestling Federation is the proud new owner of the resort formerly known as the Debbie Reynolds hotel-casino.

Florida time-share developer David Siegel Thursday reached a $200,000 settlement with the WWF and its joint venture partner 905 Parkview Group LLC, clearing the way for the Convention Center Drive property to become Las Vegas's first wrestling-themed resort.

"I threw in the towel," Siegel said Thursday night.

The WWF/Parkview venture completed its purchase of the Debbie Reynolds Thursday night, and was expected to officially record the transaction this morning.

"Right now, ... we're all just thrilled about it," said Ed Kaufman, senior vice president and general counsel of the WWF.

Meanwhile, Siegel vowed to open a time-share resort in Las Vegas, and said he would try to get Debbie Reynolds involved in the project.

"I'm going to get another property in Las Vegas and when I do, I'm going to talk to her about being involved in that," Siegel said.

In return for dropping his pursuit of the Debbie Reynolds, Siegel gets $200,000 and 92.5 percent of the Debbie Reynolds operating company, now a shell corporation devoid of assets. Siegel could use the Debbie Reynolds shell to take his company, Central Florida Investments, public. Earlier this month, Siegel said a CFI initial public offering was in the works.

Siegel has had a long involvement with the Debbie Reynolds, which declared bankruptcy in July, 1997 after losing money for years. Siegel tried to buy the resort earlier this year for $14 million, but was forced to up that offer to $15.6 million when open bidding broke out in bankruptcy court.

Siegel eventually dropped that offer, as did a backup bidder, and the property was forced to an auction Aug. 5. The WWF/Parkview joint venture submitted the winning bid of about $9.2 million, and later upped that offer to $10.1 million to satisfy disgruntled creditors. Total secured liens against the Debbie Reynolds totaled $11.5 million.

In bankruptcy court two weeks ago, Siegel re-entered the bidding, forcing the WWF to up its offer to $10.65 million. That offer was approved by the court, and all seemed settled until last week, when Siegel resurfaced with an $11.5 million offer -- exactly enough to pay all secured creditors in full.

U.S. Bankruptcy Court Judge Robert Clive Jones ruled last week that Siegel could not re-bid, as the sale to the WWF had already been approved. This week, Siegel and the Debbie Reynolds operating company appealed that ruling, but were denied again.

Siegel appealed, but he had lost the support of the Debbie Reynolds operating company, official debtor in the bankruptcy proceeding. Having determined the chances of winning an appeal were abysmally low, and realizing that interest on the resort's secured debt was piling up to the tune of several thousands of dollars a week, the company decided not to join Siegel in future appeals.

That decision appears to be the straw that broke the camel's back.

"I felt abandoned," Siegel said. "I felt like I was fighting this battle alone."

Siegel's previous change of heart -- last week's decision to bid $11.5 million for the resort -- came after he saw Reynolds singing in a movie on television. Siegel said he re-entered the fray because he wanted to help Reynolds.

"I tried to help her and it cost me a lot of money," he said.

Siegel put $250,000 into the Debbie Reynolds at the time he made his first $14 million offer. That money was to keep the resort running through bankruptcy proceedings.

Because Siegel's investment was not secured against any property, he was at the bottom of the list of creditors when his purchase offer fell through. It was partly out of resentment that he would lose his $250,000 that Siegel re-entered bidding in bankruptcy court two weeks ago.

The $200,000 WWF/Parkview payment compensates Siegel in part for his efforts. But Siegel also disclosed Thursday that he turned down a $300,000 WWF offer Wednesday -- before the appeal hearing in Jones' courtroom.

"That was the biggest gamble I ever took in Las Vegas," Siegel said. "I rolled the dice."

Siegel said he is looking at about six other Vegas properties.

Though elated they have finally won the battle for the Debbie Reynolds, WWF officials were still not ready to release detailed plans for the property Thursday. Kaufman said WWF officials will visit the property in coming days to assure workers they still have a place there. Renovation plans are still being worked out, he said.