Delaware Judge Orders Papaya Gaming to Prefund U.S. Payments at 115%

Israeli gaming company Papaya Gaming must place funds in its U.S. accounts equal to 115% of all proposed U.S. disbursements before making those payments, under requirements set out at a Monday hearing. Judge Mary F. Walrath of the U.S. Bankruptcy Court in Delaware directed that the money come from the company's Israeli accounts. Papaya also cannot transfer funds to corporate insiders or foreign affiliates. Walrath extended automatic bankruptcy protections to its U.S. and Israeli businesses, preventing vendors and creditors from terminating contracts or seizing U.S. assets during the restructuring.