DALLAS, Nov. 6, 2018 /PRNewswire/ — Taco Bueno Restaurants LP (“Taco Bueno”, or “the Company”) today announced that it has entered into an agreement with Taco Supremo, LLC, an affiliate of Sun Holdings, Inc. (“Sun Holdings”), and certain of its other stakeholders regarding the terms of a comprehensive financial restructuring that will position the Company for long-term financial health and enable the Company to better compete in the Tex-Mex quick-service restaurant sector.
Sun Holdings is a multi-concept franchisee based in Dallas, Texas, with more than 800 locations across eight states, including Burger King, Popeyes, Arby’s, Golden Corral and Krispy Kreme. As one of the largest franchisees in the United States, Sun Holdings has more than 20 years of operating experience and expertise in quick service restaurants. Upon Taco Bueno’s completion of its restructuring, Sun Holdings intends to invest in remodeling Taco Bueno locations, increasing brand initiatives and enhancing the customer experience.
To implement the restructuring process, the Company and its subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas and filed a prepackaged plan of reorganization (the “Plan”). Taco Bueno will continue to operate in the ordinary course of business, serving fresh and flavorful authentic Tex-Mex cuisine during the restructuring process.
Prior to the filing, the Sun Holdings affiliate acquired all of Taco Bueno’s outstanding bank debt and has provided a commitment for up to $10 million in debtor-in-possession (“DIP”) financing that, subject to court approval, will support the Company’s operations during the financial restructuring process. Under the terms of the Company’s prepackaged plan of reorganization, Sun Holdings would become the owner of Taco Bueno through a debt-for-equity swap.
“We are pleased to have reached this agreement with Sun Holdings on the terms of a financial restructuring that will strengthen our balance sheet and position our company for continued success. We also look forward to welcoming Sun Holdings as the new owner of Taco Bueno,” said Omar Janjua, Chief Executive Officer, Taco Bueno. “Sun Holdings is a large, multi-concept franchisee based in Dallas with a deep understanding of both the quick service space and the region where we operate, which will enable us to be an even more attractive employer, business partner and dining staple in the communities we serve. During this court-supervised process, we will continue to focus on initiatives to grow the Taco Bueno brand, while remaining true to our roots, delivering great-tasting meals to our customers in an inviting and comfortable environment. We thank our dedicated employees for continuing to provide an authentic, better-tasting Tex-Mex experience and unmatched customer service to guests as we’ve done for more than 50 years.”
During the restructuring process, Taco Bueno expects to continue operating restaurants across Texas, Oklahoma, Arkansas, Kansas, Louisiana and Missouri, which includes restaurants independently owned and operated by franchisees that are not a part of the Chapter 11 proceedings.
“Taco Bueno is a great brand with loyal customers, and we have long admired their commitment to serving authentic Tex-Mex cuisine made by real cooks, in real kitchens and providing unmatched customer service,” said Guillermo Perales, Chief Executive Officer and Founder of Sun Holdings Inc. “We know quick service and the customer base well, and we see considerable opportunities to invest across the Taco Bueno footprint to enhance the customer experience and drive long-term growth for the brand. We look forward to working with Omar, the rest of the Taco Bueno management team and all the hard-working employees to continue serving Buenoheads well into the future.”
In conjunction with the Chapter 11 process, Taco Bueno has filed a number of customary motions with the Bankruptcy Court seeking authorization to support its operations during the financial restructuring process, including authority to continue to pay employee wages and provide health and other benefits, and to pay vendors and suppliers in the ordinary course for all goods and services provided on or after the Chapter 11 filing date. The Company expects to receive Bankruptcy Court approval for these requests.
Additional information is available on Taco Bueno’s restructuring website at restructuring.tacobueno.com. Court filings and other documents related to the court-supervised process are available on a separate website administered by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/tacobueno. Information is also available by calling Prime Clerk at 844-721-3891 (U.S. and Canada toll free) and 347-338-6512 (international).
Vinson & Elkins LLP is serving as the Company’s legal advisor, Houlihan Lokey is serving as its financial advisor, Berkeley Research Group is serving as its restructuring advisor, and JLL is serving as its real estate advisor.
About Taco Bueno Restaurants LP
Taco Bueno is committed to providing an authentic, better-tasting Tex-Mex experience through the made-fresh-daily preparations, hand-selected ingredients, and genuine friendly hospitality. Founded in 1967 in Abilene, Texas, Taco Bueno is a privately held company with 169 restaurants in Texas, Oklahoma, Arkansas, Kansas, Louisiana and Missouri. To learn more about Taco Bueno, please visit www.TacoBueno.com or www.facebook.com/BuenoHeadquarters.
