Wirecard: insolvency proceedings opened
(CercleFinance.com) - Plunged into a huge financial scandal since last week, on Thursday Wirecard announced the opening of insolvency proceedings, a measure designed to satisfy the group's creditors through the liquidation of its assets.
In a short press release, the German specialist in electronic transactions said that its board of directors has decided to file an application for the opening of insolvency proceedings with the Munich court because of its "imminent insolvency" and its "over-indebtedness".
Wirecard acknowledged on Monday that there it was likely that a cash balance of 1.9 billion euros supposedly in its accounts never actually existed.
Last week, its auditor, Ernst & Young, refused to certify its accounts for 2019, believing that it did not have enough documents to justify the existence of this cash balance, which represents the equivalent of a quarter of Wirecard's balance sheet.
With a share price that has collapsed by over 97% since the beginning of the year, the scenario of large-scale financial fraud now seems to have been finally and definitively confirmed.
Following these revelations, Markus Braun, the group's former CEO, was briefly inprisoned on Monday, before being released the next day.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
In a short press release, the German specialist in electronic transactions said that its board of directors has decided to file an application for the opening of insolvency proceedings with the Munich court because of its "imminent insolvency" and its "over-indebtedness".
Wirecard acknowledged on Monday that there it was likely that a cash balance of 1.9 billion euros supposedly in its accounts never actually existed.
Last week, its auditor, Ernst & Young, refused to certify its accounts for 2019, believing that it did not have enough documents to justify the existence of this cash balance, which represents the equivalent of a quarter of Wirecard's balance sheet.
With a share price that has collapsed by over 97% since the beginning of the year, the scenario of large-scale financial fraud now seems to have been finally and definitively confirmed.
Following these revelations, Markus Braun, the group's former CEO, was briefly inprisoned on Monday, before being released the next day.
Copyright (c) 2020 CercleFinance.com. All rights reserved.