Archive for October 6th, 2012

Chronicle of David Siegel and His PH Towers

Saturday, October 6th, 2012

David Siegel, chairman and CEO of the Westgate brand, is in the news again but this time for the right reasons. A chronicled documentary, “Queen of Versailles”, on the company’s efforts to promote its elite project PH Towers Westgate, has finished its Las Vegas run. The documentary, a big-screen reality TV show co-starring David Siegel, has documented the extravagant life of David and his family; their 90,000 square foot new house “Versailles” and its opulence.

Westgate’s chief operating officer Mark Waltrip said “The movie is interesting but has some inaccurate portrayals of both the company and the family”. PH Towers, the largest timeshare building in Las Vegas, is mired in problems. Buckling under pressure from lenders, David ceded control over the towers last November through a deed in lieu of foreclosure.

Eventually, the largest letters on the tower were replaced by the words “Hilton Grand Vacations”. Yet, even this wasn’t a solution Siegel’s growing list of problems. PH Towers is facing a nonjury trial in front of Clark County District Judge Elizabeth Gonzalez, on a series of construction issues. Tutor-Saliba Corp. is clamoring for $23.3 million on account of unpaid work, excluding interest and legal bills while Westgate has countered that Tutor owed $30 million for defective work and $100,000 a day for late delivery.

Entangled in a mesh of legal issues, the bank laid out terms for Siegel to give up his control so as to continue living his “high-life”. Reeling under enormous pressure from all spheres, Siegel approved the sale of PH Towers to Resort Finance America, a unit of New York based Centerbridge Capital Partners L.P. David’s letter to the Lauren Greenfield, director of the so-called documentary, to add a final frame stated that David has refinanced and restarted construction on “Versailles”, just four days before screening has come as a surprise. This, however, did not make it to the documentary.

There are rumors that the lawyers have mused about adding this documentary “Queen of Versailles” as evidence to the trial.