Reynolds "intends to work cooperatively with his creditors to propose a plan to meet his obligation, maximize his business opportunities and continue his illustrious career in the entertainment industry," said publicist Jeffrey Lane in a statement. "Frankly, it's as confusing to me as it is to you," Lane told E! Online.
The 60-year-old actor will keep his ranch in Jupiter, Florida, and will continue to make alimony and child support payments to Loni Anderson and their 8-year-old adopted son, Quinton. However, Reynolds, whose film comeback started with a role in Striptease and is set to continue in an upcoming comedy-western costarring Sinbad, will be able to control his assets without liquidating them.
Reynolds was the top box-office draw in the country in the early '80s, regularly starring in hits like Smokey and the Bandit and Cannonball Run.
But his bankability waned. Testifying in a custody hearing for Quinton in 1994, Reynolds said he lost the $40 million he'd earned from his '80s heyday up through his costly divorce from Anderson. He blamed his financial dilemma on bad luck and mismanagement.
Reynolds said a former accountant swiped $15 million from him. During his tabloid-worthy split, he lost lucrative endorsement deals with Quaker State and the Florida Citrus Commission. His TV comeback was stymied when CBS canceled Evening Shade. And when the network sold reruns of the sitcom to the Family Channel for a pittance, Reynolds lost a bundle. "Basically, I owe $5 and I got $4," Reynolds testified.
CBS sued Reynolds and his production company in federal court in October, claiming the actor has failed to continue making payments on a $3.7 million loan the network made to him in 1992.
And last June, his former talent agency, William Morris, went to court to force Reynolds to pay a $140,000 debt.
"Like every American, I'm having a cash-flow problem right now," Reynolds told a judge two years ago. "That's why I'm an actor, not an accountant."