U.S. Federal Court Orders Papaya to Stop Moving Assets Outside the United States
Key Highlights
- ➤Papaya barred from moving U.S. account assets, protecting Skillz’s approximately $730 million judgment
- ➤Ordinary-course payments require 115% overseas pre-funding and reporting to Skillz and the U.S. Trustee
- ➤Papaya transferred more than $70 million from U.S. to Israeli accounts before April trial
- ➤Papaya’s U.S. players generated 85%-97% of monthly revenue from 2021 through 2026
- ➤Israeli court creditor vote on Papaya’s revised repayment proposal is scheduled for November 8, 2026
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.
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