WWF pins down Debbie Reynolds with higher bid

The World Wrestling Federation won bankruptcy court approval to buy the Debbie Reynolds hotel-casino Thursday, but it didn't come easy.

The professional wrestling organization had to up its offer twice, once to placate creditors concerned they weren't getting enough money, and once to out-bid David Siegel, a Florida time-share developer interested in the resort since early this year.

At the end of the day, the WWF's $10.65 million offer for the Debbie Reynolds was the high bid, edging Siegel by $100,000, and outpacing an offer the WWF made at a public auction Wednesday by $1.4 million.

"I went as high as I wanted to go," Siegel said after the hearing.

WWF representatives remained evasive about their plans for the resort.

"Las Vegas is the entertainment capital of the world and definitely our audience," Vince McMahon, chairman of the WWF, said in a statement released after the hearing. "Through our worldwide television network ... we will promote the World Wrestling Federation Hotel & Casino as well as Las Vegas as nobody else can. Our theme hotel, casino and restaurant will attract our fans not only from the United States and Canada, but also from around the world."

At the beginning of Thursday's hearing, WWF officials announced they had increased their overall offer from the $9.265 million bid at Wednesday's auction to $10.159 million. The increased offer was the result of "18 hours of negotiations" with various resort creditors who had expressed reluctance to accept the $9.2 million offer in court Wednesday afternoon, said WWF attorney Mark Risman.

Several creditors told Judge Robert Clive Jones the nearly $1 million increase, while not enough to fully settle their claims, was a fair compromise.

One important exception was Siegel, who loaned the Debbie Reynolds $250,000 to keep it running earlier this year. At that time, Siegel made a $14 million offer to buy the resort. He was later forced to raise his offer to $15.6 million when another bidder, Calstar Corp., entered the fray.

Both Siegel and Calstar later dropped their offers, but Siegel never got his $250,000 back.

"This court turned down my $14 million offer," Siegel said. "It would seem unconscionable to accept an offer like this," he said of the $10.159 million WWF offer.

Still, Jones said he was inclined to accept the WWF offer, but called a recess to give higher offers a chance to materialize.

It didn't take Siegel long to decide. During the break, he told reporters he would offer $10.3 million for the Debbie Reynolds.

"I'm going to build as many additional units on the additional property as I can," he said.

He didn't bid at the Wednesday auction because "I was right on the fence," Siegel said. The events in court Thursday morning "pushed me right over," he explained.

When court resumed, Siegel rolled his offer back to $10.2 million. But Judge Jones would have none of that.

"I'm not going to allow over-bidding unless it's a substantial amount," Jones said. That amount would start at $10.5 million, the judge said.

Meanwhile, attorneys for creditors and the WWF decried Siegel's strategy.

Calling Siegel's earlier $14 million and $15.6 million offers two "bites at the apple," Bob Olson, an attorney for Resort Funding, which holds $4 million in mortgage lien's against the resort, argued Siegel had already had his chance.

"He had a third bite at the apple," Olson said. "He could have bid at that auction yesterday."

"This is a form of blackmail that he is trying to perform in this court," said Risman.

But citing his duty to collect as much for the property as possible, Judge Jones allowed Siegel to raise his offer to $10.5 million.

"We do have a higher, better offer," Jones said. "I think in equity and common sense ... that it makes sense for the court to do this."

But the WWF was not willing to let the Debbie Reynolds slip away that easily. George Simon, a principle in Parkview Group, a Cleveland investment firm in a joint venture with the WWF to buy the resort, quickly upped Siegel's offer. Two bids later, the WWF offered $10.65 million, and Siegel declared himself out of the running.

The WWF must produce 20 percent of the sale price by Friday, and must close the sale within 14 days. WWF officials declined to provide any new information about their plans for the resort.

"McMahon is confident that the hotel and casino is a logical expansion of the WWF brand," stated the WWF release. "It is a new venue in which to entertain our fans and have them participate. We are anxious to get the plans developed for renovation of the property and to inject some WWF attitude into Las Vegas."

WWF officials said they have not yet decided whether to close the resort during renovations, or whether Debbie Reynolds will continue to be involved.

The WWF is a subsidiary of Titan Sports Inc., of Stamford, Conn. Both the WWF and Parkview Group are privately-held.

With 193 rooms and a 6,600-square foot casino space, the Debbie Reynolds has struggled since opening in 1993. It entered bankruptcy last summer after an acquisition offer by ILX Inc., of Phoenix, fell through.

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