Svangvitaya L.L.C., the operator behind San Diego’s long-running Sala Thai restaurant, has filed for Chapter 11 bankruptcy. The San Diego restaurant plans to stay open while it works through the court-supervised restructuring.
Why Svangvitaya L.L.C. Filed for Bankruptcy
The official filing shows that Svangvitaya L.L.C., or Sala Thai, made its way to the U.S. Bankruptcy Court for the Southern District of California on December 3. The filing cites a significant gap between the restaurant’s assets and liabilities, prompting the need for restructuring.
Below is a summary of the details given in the official filing:
- Filing Date: December 3, 2025
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of California
- Type of Filing: Active, Voluntary Petition, Subchapter V
- Chapter: 11
- Case Number: 25-05083-JBM11
- Estimated Assets: $0 – $50,000
- Estimated Liabilities: $1,000,001 – $10 million
- Reason for Filing: A wide gap between assets and liabilities requires business readjustment under court guidance
Sala Thai has been serving patrons in San Diego with a range of Thai items for the last 35 years. Some menu highlights at the Chiravan Svangvitaya-owned restaurant include Calamari, vegetable soup, Ka Prow, Red Curry, and Pad Woonsen.
What’s Been Filed So Far
Attorney Michael Jay Berger from Law Offices of Michael Jay Berger submitted the petition on behalf of Svangvitaya L.L.C. on December 3. Chiravan Svangvitaya, the president of the San Diego food establishment, signed the petition before it was filed.
The official filing classifies Svangvitaya L.L.C. as a corporation. The filing designates the San Diego restaurant as a small business debtor. As a result, the business is seeking to proceed under Subchapter V of Chapter 11.
The San Diego restaurant’s aggregate noncontingent liquidated debts are below $3,424,000. It should be noted that this value could change on April 1, 2028, and every three years after that.
As per the official filing, Svangvitaya L.L.C. currently owes around 49 creditors in total. Attorney Michael Jay Berger submitted the list of creditors who have the 20 largest unsecured claims in the bankruptcy court. Among these are the California Department of Tax and Fee Administration, Spartan Capital, United First, and Cromwell Capital, LLC.
The petition states that the business expects to have enough funds to make payments under the Chapter 11 plan.
The filing underscores the company’s plan to stabilize its finances while continuing to serve customers in San Diego.
