Bankruptcy Judge Blocks Papaya Gaming From Moving Assets Offshore After CEO Testimony

A federal bankruptcy judge in Delaware has barred Papaya Gaming from transferring assets outside the United States as the company undergoes debt restructuring in Israel. Papaya is an Israeli-based mobile gaming operator that was convicted earlier this year of violating the federal Lanham Act and the New York General Business Law. On Oct. 27, US Bankruptcy Judge Mary Walrath ordered Papaya to cease moving assets from the company’s US accounts to offshore holdings. A three-day evidentiary hearing held on Oct. 14-16 revealed that Papaya transferred roughly $30 million a month from its US holdings to accounts in Israel.