A result of the balance of scandal: Wirecard provides for insolvency

in a balance-sheet scandal involved German payment processor, Wirecard, the Bankruptcy threatens. On Thursday, the Dax group announced in an ad-Hoc message that

A result of the balance of scandal: Wirecard provides for insolvency

in a balance-sheet scandal involved German payment processor, Wirecard, the Bankruptcy threatens. On Thursday, the Dax group announced in an ad-Hoc message that the Board have decided to submit to the competent local court of Munich, a request for the opening of insolvency proceedings due to imminent insolvency and Overindebtedness.

Henning Peitsmeier

economic correspondent in Munich.

F. A. Z.

It would be examined whether the insolvency applications for subsidiaries, the Wirecard group would have to be made, it said. Since a few days, the new interim chief James Freis negotiated with 15 creditor banks on the extension of credit, about Euro 1.85 billion.

After Wirecard, on 19. June could not provide audited balance sheet, the banks have the right to terminate the loans. In Parallel to the negotiations was that some customers were nervous and the services of the Munich-based payment processor no longer wanted to take advantage of.

The German stock exchange suspended the trading of the Wirecard share on Thursday for the time being. As a result of the balance sheet scandal, the price dropped drastically.

Wirecard is also the focus of law enforcement authorities. "We examine all the criminal offences under consideration", said a spokeswoman for the Prosecutor's office of Munich I on Monday.

Updated Date: 25 June 2020, 05:19

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