Financially troubled Taco Bueno Restaurants has filed for bankruptcy and may soon have a new owner in Sun Holdings Inc., a multi-concept franchisee based in Dallas. Taco Bueno has 169 locations systemwide.

As part of a financial restructuring process, Taco Bueno and its subsidiaries 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. 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.

Prior to the filing, Sun Holdings acquired all of Taco Bueno’s outstanding bank debt and provided a commitment for up to $10 million in debtor-in-possession financing that, subject to court approval, will support the Tex-Mex chain’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.

Sun Holdings operates more than 800 restaurant locations across eight states for such chains as Burger King, Popeyes, Arby's, Golden Corral and Krispy Kreme.