Banking Law

Wirecard Fights for Survival as Billions May Not Exist (2)

June 22, 2020, 1:42 PM

Wirecard AG was left fighting for survival after acknowledging that 1.9 billion euros ($2.1 billion) that it had reported as assets probably don’t exist, deepening an accounting scandal that has rattled Germany’s financial industry.

The payments processor said it’s in discussions with creditors and considering a full-scale restructuring after pulling its financial results for fiscal 2019 and the first quarter of 2020. Previous descriptions of its business with third parties, which process transactions on Wirecard’s behalf, were “not correct.”

Even before the early Monday statement, the unfolding scandal had seen Wirecard’s shares and bonds collapse, its chief executive...

To read the full article log in. To learn more about a subscription click here.