Wirecard to Apply for Insolvency with $4 Bln Debt to Investors Unpaid

Thu, 06/25/2020 - 13:16
Yuri Molchan
European payment heavyweight Wirecard has admitted the $2.1 bln never existed, is going bankrupt and owes $4 bln to its creditors as shares have fallen 97%
Cover image via stock.adobe.com

As reported by Reuters, the German-based Wirecard payment giant that was recently accused of ‘losing’ $2.1 bln from its balance, has officially admitted that this money only existed on paper and intends to apply for insolvency in court.

The company now has a mammoth-sized debt of $4 bln to its creditors.

Wirecard goes bankrupt, says ‘the money is gone’

Reuters has written that the German-based payments heavyweight Wirecard (which has been running successfully since 1999) has admitted that the $2.1 bln, whose absence emerged during a recent audit, never existed in reality.

The company’s former chief confirmed this fact.

Back in 2018, Wirecard was put on a list of 30 biggest entities in Germany which was valued at $28 bln.

The creditors hope to get their $3.9 bln back

The payments behemoth has decided to apply for insolvency in court. Meanwhile, it still owes its creditors a gargantuan sum of $3.9 bln (3.5 bln EUR).

This amount consists of the 1.75 bln in loans Wirecard received from fifteen banks in Germany, 500 mln of which came from creditors through bonds.

Wirecard Missing $2.14 Bln As Share Price Plunges 50%

CEO Marcus Brown taken into custody

Previously, it was reported that Wirecard’s CEO, billionaire Markus Braun, was arrested on fraud charges, accused of presenting false data, enlarging the company’s balance sheet with fake transactions and charged with market manipulation.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.

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