I heard that rumor that Carlos Villagran (Kiko) was dead, but it wasn't true. Around the early 80s he got into a feud with Roberto Gomez Bolaños (Chespirito) over the presence of his own character on the show, plus he wanted to receive full profits for promoting 'Kiko' as his own character, and Chespirito wasn't very happy with it. So Carlos went his own way, he went to Venezuela to do a show and didn't quite suceed.
The dispute didn't have a bad ending and Carlos Villagran attended a tribute to Chespirito about a year ago. The highlight of the show was seeing the once friends turned into enemies, embracing each other and becoming friends again.
Mr.Jingles