TACO VILLA<TVLA> IN DEBT TALKS, MAY SELL ASSETS
Taco Villa Inc said it is holding talks
with RepublicBank Corp <RPT> to restructure its loan payments
and waive some financial convenants on its debt.
    It also said it may sell certain assets to repay the bank
borrowings, and is holding talks with interested parties. It
expects to write down some previously acquired assets, but the
company did not say by how much.
    At the end of 1986 it had 11 mln dlrs in bank debt
outstanding with a 1.7 mln dlr payment due May one. It is also
seeking to extend 1.2 mln dlrs of mortgage payments due this
year, and is in talks to extend other debt payments.
    The company said it previously reported special charges of
nine mln dlrs in the fourth quarter from losses on restaurant
closings, lease termination costs, contract settlements and
severance arrangements.
    Since it has not yet decided how to treat the additional
writedowns and debt, it has delayed its 1986 financial
statement. It said it expects to file an amendment to its form
10-K but did not say when the amended filing would be made.
    The company said it hoped to resolve its debt problems in
the near future.
 Reuter
