A US bankruptcy court has barred Papaya Gaming from moving money out of the US while Skillz chases a roughly $730m judgment.
The order: Only certain routine payments are allowed, funded first from non-US accounts at 115% of the amount paid. No transfers to insiders or affiliates, and every payment must be reported to Skillz's lawyers and the US Trustee.
Why: The court found Papaya moved over $70m to Israeli accounts before the April trial without telling the New York court, and called CEO Oriel Bachar "not credible" on cash transfers.
What's next: Papaya's revised repayment proposal goes to an Israeli creditor vote on November 8, and the Israeli collection stay expires November 25. The US restrictions stay until the Delaware court rules on any Israeli arrangement.
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A US bankruptcy court has barred Papaya Gaming from moving money out of the US while Skillz chases a roughly $730m judgment.