U.S. Federal Court Orders Papaya to Stop Moving Assets Outside the United States
The U.S. Bankruptcy Court for the District of Delaware (the "Delaware court") has prohibited transfers from the U.S. bank accounts of Papaya Gaming Ltd., an Israeli company, and its U.S. subsidiary, Papaya Gaming Inc. (together, "Papaya"). Papaya owes a judgment of approximately $730 million to Skillz Platform Inc. ("Skillz"), a wholly owned subsidiary of Firy Inc. (NYSE:FIRY) ("FIRY"). The only exception to the order is for certain categories of scheduled ordinary-course payments, which Papaya must first fund from its accounts outside the United States, so cash in the U.S. accounts grows from operations rather than shrinks.
Judge Mary F. Walrath delivered an oral ruling on Friday, Octobe