Fan bids again for Reynolds' casino

David Siegel says he was so touched by Debbie Reynolds singing "Tammy" in a movie he became motivated to reopen the bidding for Reynolds' bankrupt hotel-casino near the Las Vegas Strip.

Siegel on Tuesday topped the World Wrestling Federation's offer to buy the Debbie Reynolds hotel-casino by $850,000. The WWF had earlier outbid Siegel.

"I changed my mind," Siegel, a Florida time-share developer, said in a telephone interview Tuesday afternoon. "I realized I made a mistake."

Siegel chalked his change of heart up to a Reynolds movie he saw on television Friday night, after returning to Florida following his failed bidding contest with the wrestlers.

"Basically I came home from Las Vegas and I saw Debbie singing 'Tammy' on the television," Siegel said. "Something just went off in my head and I said 'I've gotta buy my hotel."'

To back his offer, Siegel wired a $2 million deposit to the Debbie Reynolds' escrow account, bringing his total deposit on the property to $2.5 million. Siegel previously invested $250,000 in the resort to keep it running through bankruptcy.

Neither Siegel nor Debbie Reynolds officials are certain bankruptcy court Judge Robert Clive Jones will even agree to consider the new offer. But the irony of the seemingly never-ending Debbie Reynolds sale was lost on no one.

"It's the unsinkable deal, like the unsinkable Molly Brown," joked Todd Fisher, Debbie Reynolds' son and the resort operating company's chief executive.

"If we pull this off, her reputation as the unsinkable Molly Brown really will be true," said Siegel.

A WWF official said the Federation will contest Siegel's right to re-bid.

"Our position would be that we will file a motion to oppose as we believe that Mr. Siegel has had ample opportunity and we believe the motion is without merit," said Ed Kaufman, senior vice president and general counsel of the WWF.

Siegel bid against a WWF-headed joint venture for the property in a bankruptcy court hearing last Thursday, but ended his pursuit of the Debbie Reynolds when the WWF's offer reached $10.65 million. Jones approved the WWF joint venture as the buyer, and WWF officials said Monday they were moving ahead with plans to reinvent the Debbie Reynolds as a WWF-themed resort.

But the WWF is not scheduled to close on its purchase until Aug. 20, and its offer does not repay all liens against the property. Siegel's offer of $11.5 million would make all of the property's creditors whole.

Lenard Schwartzer, attorney for the Debbie Reynolds operating company, made an official motion asking Jones to consider the Siegel offer Tuesday afternoon. Schwartzer gives the motion a 50-50 chance of succeeding.

Judicial orders are usually final, but have been set aside, argues Schwartzer in the motion.

Citing case law, Schwartzer writes: "These cases lead us to conclude that, although the policy of finality normally protects confirmed sales from orders to set aside, sales are property set aside when compelling equities outweigh the interests of finality."

In the case of the Debbie Reynolds, Siegel's offer to completely re-pay all creditors may well be such a "compelling equity."

"We would prefer it because if it pays off the creditors, then they're happy," Schwartzer said.

Fisher said the company's creditors are solidly behind the Siegel offer.

"Every one of them has called me," Fisher said. "They're all ecstatic about the greater offer."

Several creditors protested a $9.2 million offer the WWF joint venture made at a public auction last Wednesday as being too low. Most of these creditors were swayed when the WWF venture upped its offer to $10.1 million before Thursday's bankruptcy hearing.

But those same creditors now favor Siegel's higher offer, Fisher said.

"Everybody has jumped on the bandwagon," he said.

Siegel made it clear that under his ownership, Debbie Reynolds herself will continue to be deeply involved in the resort.

"She's a big part of my plans," Siegel said. "She's the reason I'm doing it."

Siegel argued that his offer is better for everyone involved, with one exception.

"Everybody wins in this situation except for the WWF, and nobody wins under their offer except for them," Siegel said.

Like the WWF, Siegel has big plans for the Debbie Reynolds.

"I would build as many time-share units on the adjoining property as I could fit on it," Siegel said. "In the construction, we're going to plan to build a new casino on the new property."

Siegel would also renovate the existing property, including guest rooms, and would enlarge the existing lobby and casino.

The Debbie Reynolds has 193 rooms, a 6,600 square-foot casino and a 500-seat showroom. The property has 1,000 deeded time share owners.

Earlier this year, Siegel made a $14 million offer to buy the resort. He later raised his offer to $15.6 million when another company began bidding for the Debbie Reynolds in bankruptcy court. Siegel later dropped that offer, deciding the price was too high.

Siegel has developed more than 3,000 time-share units in Florida, and has plans to build 2,800 more. He also has a contract to build thousands of time-shares at a Utah ski resort.

Siegel is one of the largest time-share developers in the world. His company, Central Florida Investments Inc., generated $300 million in revenue last year, and is on a pace to generate $400 million this year, Siegel said.

"We expect great things out of Las Vegas," Siegel said. "It's a great story if we can pull this off."

The WWF's Kaufman said he is confident the court will reject Siegel's right to re-bid.

"We feel confident that we'll prevail," Kaufman said.

Fisher noted Siegel wired the escrow account more than the 20 percent required of the lead bidder, a possible indication he is preparing for a bidding war.

"What he's really doing is just sending a message out that the sleeping giant is awakened," said Fisher.

Fisher does not prefer one buyer over another, and emphasized that WWF officials have been very congenial about their purchase and their plan to transform the property from a shrine to Hollywood to a mecca for pro wrestling fans.

But it should be clear which buyer his mother prefers.

"I built that showroom for her," Fisher said. "It's pretty obvious that she would like to be in her showroom ... My preference is just to see her happy and see all the debts paid."

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