U.S. Bankruptcy Court blocks Papaya Gaming’s U.S. account transfers amid $730 million judgment
A Delaware bankruptcy court ordered Papaya Gaming Ltd. to halt transfers from its U.S. bank accounts after a $719 million judgment for false‑advertising was entered in favor of Skillz, a FIRY subsidiary. The court limited payments to ordinary‑course expenses funded from non‑U.S. accounts at 115 % of the amount paid. Papaya’s revised repayment proposal will be voted on by creditors in Israel on November 8, 2026.
Why it matters
The restriction reduces the cash available to Papaya for any settlement, potentially extending the recovery timeline for Skillz and affecting FIRY’s exposure to the creditor claim (the court order says only limited payments are allowed).
Key facts
- 1Papaya Gaming owes approximately $730 million to Skillz Platform Inc. stocktitan.net
- 2A U.S. Bankruptcy Court in Delaware blocked transfers from Papaya’s U.S. accounts and its U.S. subsidiary. investing.com
- 3Judge Mary F. Walrath issued an oral ruling on October 23, 2026 and entered a written order on October 27, 2026. investing.com
- 4The court permits only ordinary‑course payments funded from non‑U.S. accounts at 115 % of the amount paid. investing.com
- 5A $719 million judgment (plus about $10 million in fees and costs) was entered against Papaya for false advertising. investing.com
- 6Between 85 % and 97 % of Papaya’s revenue from 2021‑2026 came from U.S. players. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.