The short version
- El Nuevo Día reported that Encanto Restaurants Inc. filed for Chapter 11 bankruptcy with debts of $123.9 million
- The company listed assets of around $30 million according to El Nuevo Día
- El Nuevo Día reported the filing came three days after Encanto lost its business relationship with Yum! Brands
- El Vocero published an article questioning to whom Encanto Restaurants owes the $123.9 million
Chapter 11 filing
Encanto Restaurants Inc., the corporation linked to the operation of KFC, Taco Bell and Pizza Hut in Puerto Rico, filed for Chapter 11 bankruptcy protection after reporting debts of nearly $124 million. The liabilities are approximately four times the value of its assets, which total around $30 million. El Nuevo Día reported
The filing occurred three days after the company lost its franchise relationship with Yum! Brands, El Nuevo Día reported. Both El Nuevo Día and El Vocero reported the $123.9 million debt figure.
Also on PuertoRico.com: Cost of living in Puerto Rico
Creditors and timing
El Vocero published an article with the headline “¿A quién le debe Encanto Restaurants los $123.9 millones?” The newspaper's report focused on the parties to whom the company owes the debt. El Vocero reported
El Nuevo Día published its report in the early morning hours of Nov. 6 while El Vocero's article appeared that afternoon. The sources do not specify the exact date of the bankruptcy filing.
Where the sources differ
Both El Nuevo Día and El Vocero report that Encanto Restaurants has $123.9 million in debts. El Nuevo Día states the company filed for Chapter 11 protection, lists assets of around $30 million, and reports the filing came three days after losing its relationship with Yum! Brands. El Vocero's article focuses on questioning to whom the money is owed and does not mention the timing relative to Yum! Brands, the asset value or the specific Chapter 11 filing details.
What the reports do not say
The sources do not identify the specific creditors owed the $123.9 million, the exact date the bankruptcy petition was filed, whether operations at the KFC, Taco Bell and Pizza Hut locations will continue during the Chapter 11 case, or what restructuring plan the company intends to propose.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Reporting Encanto Restaurants se declara en bancarrota con $123.9 millones en deudas
- Reporting ¿A quién le debe Encanto Restaurants los $123.9 millones?
How we checked this
El Nuevo Día reported the bulk of the financial details and the connection to the loss of the Yum! Brands relationship. El Vocero focused on the question of which parties are owed the reported debt. The exact filing date and full list of creditors rest on information not provided in either outlet.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.
Nils Huenerfuerst / Wikimedia Commons · CC BY 4.0PuertoRico.com is free, and readers like you keep it that way.
The PuertoRico.com newsroom checks every story against its sources and publishes it free. If this one helped, a contribution of any size keeps the next one free too.
Secure checkout by Stripe: card, Apple Pay, Google Pay or Link.
One payment, nothing to sign up for.
Contributions go to Puerto Rico.com, LLC. They are not charitable donations and are not tax-deductible. Payments are processed by Stripe.
Thank you for keeping PuertoRico.com free.
Your contribution went through. It helps pay for the next story.
Contributions go to Puerto Rico.com, LLC. They are not charitable donations and are not tax-deductible. Payments are processed by Stripe.