Reynolds Debbie Hotel & Casino Inc – ‘8-K’ for 7/8/98

As of:  Wednesday, 7/8/98   ·   For:  7/8/98   ·   Accession #:  790934-98-6   ·   File #:  0-18864

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Auction Date Set for Debbie Reynolds Hotel&Casino      2±    12K 


     DEBBIE REYNOLDS HOTEL & CASINO, INC. ANNOUNCES THAT AN AUCTION HAS BEEN SET
FOR AUGUST 5, 1998                                                              

For Immediate Release                                                           

     Las Vegas,  Nevada,  July 8, 1998 - Debbie  Reynolds Hotel & Casino,  Inc.,
("DRHC"), (OTC: DEBIQ) a Nevada Corporation, announces today that the Bankruptcy
Court has approved a motion to amend the  Company's  Plan of  Reorganization  to
provide for an auction as an alternative transaction on the terms stated below: 

a.   The auction will be held on August 5, 1998 at noon.                        
b.   The hearing to confirm  the sale will be held on August 5, 1998 at 4:00    
p.m.                                                                  
c.   Eric  Nelson   Auctioneering   and   Resort   Properties   of  America     
  ("Auctioneer")  are employed as  auctioneers  and as real estate brokers
for the Company.                                                      
d.   There shall be a buyer's  premium  equal to 3% of the bid which shall be   
   the only  compensation  paid to the auctioneer at closing;  if there is a
  broker for the successful bidder, the buyer's premium maybe increased 1%
which shall be paid to the buyer's broker at closing.                 
e.   Secured  creditors  shall be entitled to credit bid the amount of their    
    secured debt. If the successful bidder is a secured creditor,  there shall
be no buyer's  premium and no  commission  paid to the  auctioneers.  
     Neither secured creditors nor their  collateral (or proceeds of collateral)
   shall be surcharged for any auction costs. Secured creditors shall not be
   required to post or show a deposit in order to credit bid at the auction.
f.   The proceeds of the sale shall be subject to liens in the same order of    
priority as the liens  held on the  property  sold and shall be paid  
    directly from escrow pursuant to the Court's order to be entered approving
any sale(s) at the auction.                                           
g.   The auctioneer shall first seek bids for all the real and personal property
     in one lot.  In the  event  that  there is no bid for the real and personal
    property in an amount in excess  of the  liens on the  property,  the real
     and  personal  property shall be offered  for sale separately; the personal
property shall be sold in lots consisting of the collateral of each   
creditor secured by personal property.                                
h.   The  property  shall  be sold  subject  to the  timeshare  unit  owners    
interest.                                                             
i.   In all other respects the Debtors Plan of Reorganization, as confirmed,    
shall remain the same.                                                

     On April 13,  1998,  pursuant  to the  Alternative  Transaction  section of
DRHC's  Revised  Plan  of  Reorganization,  Central  Florida  Investments  Inc.,
("CFI"),  an affiliate of David A. Siegel,  ("Siegel"),  Owner and  President of
Westgate  Resorts,  one of the largest  timeshare  developers in the world,  and
Calstar,  entered into open bidding for the Company. CFI's bid of $15,600,000 to
purchase  92.5% of DRHC was the  highest  and best  offer.  The  remaining  7.5%
ownership  of DRHC was to be  split  between  the  unsecured  creditors  and the
current  shareholders with the unsecured  creditors receiving 5% and the current
shareholders retaining 2.5% of the Company.                                     

     The offer was solely contingent upon CFI's  satisfactory  completion of its
due  diligence.  CFI was allowed 30 days to complete  its due  diligence  and an
additional 30 days to close the transaction.                                    

     On Friday May 8, 1998,  CFI  notified  DRHC of its  election not to proceed
with the transaction.                                                           

     Calstar's  offer to purchase  92.5% of DRHC for  $15,500,000  was awarded a
back-up offer position by the  Bankruptcy  Court. . The remaining 7.5% ownership
of DRHC  was to be  split  between  the  unsecured  creditors  and  the  current
shareholders  with  the  unsecured   creditors  receiving  5%  and  the  current
shareholders retaining 2.5% of the Company.                                     

     The back-up  offer  position  allowed  Calstar  the right to purchase  DRHC
pending the  completion  of its due  diligence  process.  The Calstar  offer was
solely contingent upon Calstar's  satisfactory  completion of its due diligence.
Calstar was allowed 30 days to complete its due  diligence  and an additional 30
days to close the  transaction.  The  transaction  was  scheduled to close on or
before  July 7,  1998,  however,  there  could be no  assurance,  until  Calstar
completed its due diligence, that the transaction would close.                  

     On Thursday  June 11, 1998,  Calstar  notified  DRHC of its election not to
proceed with the transaction.                                                   

     On May 10, 1998 the  Hollywood  Motion  Picture &  Television  Museum,  the
non-profit  organization which owns the Hollywood Memorabilia  collection on the
property, elected to terminate its relationship with DRHC and removed a majority
of its  collection  from the  property.  The Hollywood  museum  operation at the
property has been closed.                                                       

     At this  time,  the  Company is unable to  determine  if there is any value
related to the unsecured creditors claims and shareholder's equity.             

     On July 3,  1997 the  Company  filed for  relief  under  Chapter  11 of the
Bankruptcy  Code,  due to the  inability  of the Company to generate  sufficient
funds to cover,  on a timely  basis all of its debts.  The  Company  was seeking
reorganization  of its debts.  Also  filing  were  subsidiary  companies  Debbie
Reynolds  Management  Company and Debbie Reynolds  Resorts,  Inc. In addition to
filing personal  bankruptcy  under Chapter 11, Miss Debbie Reynolds  resigned as
Chairman  of the  Board,  Director  and an Officer  of Debbie  Reynolds  Hotel &
Casino,  Inc., Debbie Reynolds  Management  Company and Debbie Reynolds Resorts,
Inc.                                                                            

For more information, please call Todd Fisher, CEO, (702) 734-0711.             

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing		Date		Other Filings
		8/5/98
Filed on / For Period End:		7/8/98
		7/7/98
		6/11/98		8-K
		5/10/98
		5/8/98
		4/13/98		8-K
		7/3/97		8-K
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