Gold Standard Cafe Wins Interim Cash Collateral Use in Subchapter V
The Gold Standard Cafe won interim permission to use cash subject to the U.S. Small Business Administration’s asserted lien, giving the Philadelphia restaurant access to funds it says it needs to keep operating during its Subchapter V case. The October 29, 2026 order requires monthly payments to the SBA and sets a final hearing for December 2.
The cafe’s operator, UTU Corp., estimates the SBA’s claim at approximately $421,000. In its cash collateral motion, the company estimated the liquidation value of the lender’s collateral at approximately $25,400 and said it would have to close without access to cash collateral. Those are the debtor’s estimates, not court determinations of the claim or collateral value.
Case record
Filed ·
| Debtor | UTU Corp., operating as The Gold Standard Cafe |
| Court | United States Bankruptcy Court for the Eastern District of Pennsylvania |
| Case Number | 26-14387 |
| Petition Date | October 19, 2026 |
| Judge | Ashely M. Chan |
UTU elected Subchapter V in its voluntary petition. The interim order identifies the assigned judge and case number.
Cash collateral and the SBA loan
President and sole shareholder Joseph K. Oh said the cafe’s largest liability was a COVID-19 Economic Injury Disaster Loan from the SBA, increased to $400,000 in October 2021. According to his declaration, the SBA borrower portal showed a $422,540.33 payoff balance as of August 31, 2026. Oh said the loan was current at that time and that he and Kungmi Park personally guaranteed it. The portal balance and the approximate claim amount in the later motion are estimates from different dates, not an allowed claim.
The interim order permits UTU to use cash collateral through the final hearing under an attached monthly budget, with a 10% permitted variance. The budget projects $46,000 in monthly receipts and $46,000 in disbursements, including $19,200 for employee and owner compensation and $800 for SBA adequate protection. Those are budgeted amounts, not reported actual results.
The order directs UTU to pay the SBA $800 monthly beginning November 15, maintain insurance and provide reasonable access to books and premises. To the extent the SBA’s interest declines in value after the petition, the order grants it a replacement lien and an allowed claim under section 507(b), subject to specified limitations and a carve-out for trustee, clerk and allowed professional fees. The order expressly leaves the validity, priority, extent and amount of the SBA’s claim and lien undetermined. The final hearing is scheduled for December 2, with objections due November 25. Interim cash collateral order.
Restaurant operations and wages
Oh said UTU has operated The Gold Standard Cafe since 2015, serving dine-in, takeout, delivery and catering customers. He attributed the filing to rising food, labor, insurance, utility and supply costs without a corresponding increase in sales, and said the company intended to reorganize its debts while continuing operations. His declaration reported average monthly sales deposits of approximately $46,520 for the 12 months ended September 30, 2026.
On October 29, the court also authorized UTU to pay up to $19,200 in combined prepetition wages and related payroll tax obligations for its four employees, subject to the order’s limits. Authorization does not establish that those amounts have been paid.
The immediate question is whether the court will grant final authority to use cash collateral and on what terms. The interim budget and protections govern through the scheduled final hearing; they do not establish the terms of a confirmed restructuring plan.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.