Wirecard files for insolvency amid German accounting scandal

Former chief executive of Wirecard Markus Braun
Former chief executive of Wirecard Markus Braun was arrested on suspicion of falsifying accounts at the company Photograph: Michael Dalder/Reuters

German payments giant Wirecard has filed for insolvency in the midst of a major accounting scandal linked to a €1.9bn (£1.7bn) hole in its finances.

The development comes just days after its former chief executive Markus Braun was arrested on suspicion of falsifying accounts at the company, which processes tens of billions of euros in credit and debit transactions every year. He was arrested after presenting himself to police, according to German media

Braun, 51, was bailed from police custody after posting a deposit of €5m on Tuesday.

A brief regulatory statement released by the company on Thursday said: “The management board of Wirecard AG has decided today to file an application for the opening of insolvency proceedings for Wirecard AG with the competent district court of Munich (Amtsgericht München) due to impending insolvency and over-indebtedness.”

The company’s shares, which have lost around 90% of their value in less than a week, have been suspended from trading in Frankfurt.

More details to follow…



source https://www.theguardian.com/business/2020/jun/25/wirecard-files-for-insolvency-amid-german-accounting-scandal

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