The U.S. Bankruptcy Court for the District of Delaware ordered Papaya Gaming Ltd. and its U.S. subsidiary to halt asset transfers abroad, citing a $730 million judgment from a prior lawsuit. The court also mandated that ordinary payments be pre-funded from non-U.S. accounts at 115% of the amount paid.
The ruling followed concerns about Papaya’s CEO, Oriel Bachar, and his credibility in testifying about cash transfers. The court also noted that Papaya had not informed the New York court of transfers that could have altered its decision on restraining U.S. revenue.
The Delaware court recognized the Israeli insolvency proceeding as the main case for Papaya’s parent company but granted only non-main recognition for the U.S. subsidiary, citing its center of main interests in the U.S.