Durga Capital and some other major investors are arguing that the retail chain is administratively insolvent and should not be permitted to reorganize under Chapter 11 because it has no realistic plan and is essentially wasting away the remaining assets in order to make some recovery for the equity holders. The chain’s founders, Rishi and Tapasya Bali, have offered DIP financing from their personal funds totaling an initial $50,000 with a $350,000 total commitment that they project would fund operations for nine months. Yoga Smoga, with six stores in tony locations like Fashion Island in Newport, CA, and Short Hills, ... Log in to view full article.