Taco Bueno filed for chapter 11 protection yesterday after reaching a deal that will ultimately cede ownership of the chain to a big, Dallas-based multiconcept franchisee, Sun Holdings, Restaurant Business reported. Sun Holdings, which operates more than 800 locations for a number of brands such as Burger King, Arby’s and Popeyes, will become the owner of the chain in a debt-for-equity swap. Sun, which recently acquired Taco Bueno’s bank debt, has agreed to invest in remodeling Taco Bueno locations, “increasing brand initiatives and enhancing the customer experience.” Sun Holdings will provide up to $10 million in financing for Taco Bueno to get through bankruptcy. It will then swap the debt it holds on the chain for equity in the company and will become its owner. Taco Bueno filed for bankruptcy in the U.S. Bankruptcy Court in the Northern District of Texas, claiming between $10 million and $50 million in assets and between $100 million and $500 million in liabilities.
