The balance sheet scandal at the German payment services provider Wirecard has escalated dramatically. 1.9 billion euros are nowhere to be found. The stock is again plummeting.
Just exchanged Wirecard AG’s CEO Markus Braun is a well-informed circles, that a large part of its share package in the deep in a balance-sheet scandal, payment service providers are entangled to sell. It is a question of shares which he had deposited in 2017, as security for a loan of 150 million euros.
After Wirecard had granted a multi-billion amount is untraceable, has lost the share of the company last week, 72 percent of their value. Thus, the sale of the collateral, the portion covered was well-informed circles, that seem to be necessary.
The 2002 CEO appointed brown stopped, according to Bloomberg data, as at 19. June 7 percent of Wirecard AG shares and was the largest shareholder of the company. How to listen to was, and helped in the financing of its participation in a originally with Deutsche Bank AG closed the margin loan of 150 million euros, the Bank now has repelled. A duty of notification from the December 2017 reports to the Deposit of 4.2 million shares as collateral.
Brown declined to comment, as well as a spokesman for the German Bank. The share of the payment service provider, on Monday came yet deeper into the downward spiral. They lost in early trading, almost 38 percent at 15.10 euros, after they were already broke in on Thursday and Friday up to 82 percent. Thus, the stock market shrunk in value to almost 1.9 billion Euro, which since Wednesday 11 billion in air have dissolved. A merchant showed itself in the light of the since Thursday to Wirecard prevailing panic of investors is hardly surprising that the share event is now more “like a stone”. “In the case, the knife wants to attack no-one in,” he said. “The future of the company is currently more than uncertain.” Added to this is a wave of lawsuits.
The credit rating Agency Moody’s had lowered late on Friday evening your judgment for the credit rating of Wirecard on “junk” and informed that further gradations are possible.
1.9 billion euros are missing
The missing 1.9 billion euros to the alleged fiduciary accounts in Asia, existed “in all probability” had been informed of the Dax group on Monday night. The preliminary results of the past business year and the forecasts for 2020 and beyond are, therefore, adhere to. The company will see reductions in costs, a conversion and from the sale of, or the setting of company parts and products.
The financial group, for dealer and customer payments in Online stores and at the cash register, handles had to last week, its annual financial statements in 2019 for the fourth Time to move, because the auditors of EY, a 1.9 billion Euro hole in the balance sheet had found. The Wireceard shares plunged in the depth, the longtime Chairman of the Board, the Austrian Markus brown, resigned, and another Board was suspended. The Problem for Wirecard is that banks can terminate a line of credit and Wirecard have to pay back the money.
Wirecard was in “constructive discussions” with its banks regarding the continuation of the credit lines and of the business relationship, the company said, with its headquarters in Aschheim near Munich. The investment Bank Houlihan Lokey examined options for a sustainable financing strategy. Wirecard also stressed, the systems of the group ran without any restriction. Belongs to the group, the Wirecard Bank, the banking license has a Full and all financial may offer services.
The hope is to keep Silent of the banks was supported by a newspaper report: How the “Frankfurt General Sunday newspaper” reported, want the banks to the company are not covered. “No one has an interest, to terminate the loan”, it was said, therefore, on Saturday from one of the participating houses. “All now want to stabilize this thing in the short term.” From the environment, Wirecard, it was, according to the report, we hope to come to an agreement until the end of the week. In addition, Wirecard intends to examine the steps the business to continue. Including cost-share reductions, and a restructuring, sale, or settings of company and product segments. The IT systems of the Wirecard ran without restrictions, it said further. However, Wirecard must now also expect that the customers in the face of the loss of Confidence in the big Wide world.
Balance sheets are manipulated?
The group was expected to Thursday that the now missing 1.9 billion euros – a quarter of the balance sheet total – are created on the accounts of a Trustee in the case of banks in Asia. The reliability of this fiduciary relationship will now be challenged, said the company. The Board will assume that the previous descriptions of the so-called third party business are incorrect. You had been looking, whether, in what manner and to what extent the business actually in favor of Wirecard.
Various media, especially the Financial Times, had been accused of Wirecard in the last few months, on several occasions, the Manipulation of balance sheets. Ex-commercial chief brown had denied this always. A by the Supervisory Board commissioned a special audit by KPMG should refute the allegations, the auditor found serious deficiencies in internal controls, as well as indications that there could be irregularities in the business with third-party partners. The auditors from EY, which should certify the financial statements in 2019, had explained last Thursday, documents to funds in trust accounts at banks in Asia had apparently been falsified.
The Philippine Bank, BPI suspended in this connection, according to information from an employee. In the case of the rival BDO said that it’s everything after that that one of their marketing staff had forged a Bank certificate. The Philippine Central Bank had declared on Sunday, the Wirecard billion had not ended up in your financial system. The names of the two greatest financial houses in the country, would be used to “track down the perpetrators to blur”. You will, however, do some Research.