Taco Bueno Restaurants pre-packaged plan of reorganization confirmed

By Caroline Salls

Pittsburgh, Dec. 19 – Taco Bueno Restaurants LP’s pre-packaged plan of reorganization was confirmed Wednesday by the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Taco Bueno entered into an agreement with Sun Holdings, Inc. affiliate Taco Supremo, LLC and other stakeholders regarding the terms of a comprehensive financial restructuring that will position the company for long-term financial health and enable it to better compete in the Tex-Mex quick-service restaurant sector.

Before Taco Bueno’s bankruptcy filing, Taco Supremo acquired all of Taco Bueno’s outstanding bank debt.

Under the terms of Taco Bueno’s pre-packaged plan of reorganization, Sun Holdings will become the owner of Taco Bueno through a debt-for-equity swap.

Priority claims will be paid in full in cash.

Other secured claims will be paid in full in cash or reinstated or the holders of these claims will receive the collateral securing the claim.

Holders of general unsecured claims and TB Holding interests will receive no distribution.

The restructuring support agreement requires the plan to take effect by Jan. 22.

Taco Bueno, an Irving, Texas-based restaurant operator, filed bankruptcy on Nov. 6. The Chapter 11 case number is 18-33678.

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