The payment company German Wirecard submits an application to the insolvency

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A logo that is illuminated is located on the outside of the head office of Wirecard in the district Aschheim, Munich, Germany.Michaela Handrek-Rehle | Bloomberg | Getty Images

Wirecard shall file an application for the opening of insolvency proceedings with the district court of Munich, announced on Thursday that the company.The company said in a brief statement that the management had decided to open the procedure ” because of the impending insolvency and over-indebtedness “.

This marks a fall tumultuous for Wirecard, once a darling of high-technology in Germany, after the company revealed that 1.9 billion euros ($2.1 billion) of cash on the balance sheet had disappeared.

Another admission on Monday that the money probably did not exist has further exacerbated the problems of Wirecard, the company is trying to conclude an agreement with creditors on a life line for funding.

The accounting irregularities, discovered for the first time by the Financial Times in a survey last year, have also threatened to tarnish the reputation of the financial regulator, German BaFin.

Wirecard said it also assessed if applications for insolvency should be filed for its subsidiaries. The company controls a bank in Munich as well as an emission unit cards in the United Kingdom.

The collapse of Wirecard comes after the arrest of the former CEO Markus Braun at Munich for swelling the balance sheet of the company. Braun has since been released on bail of 5 million euros and must report to police once a week.

Braun, who has directed It for 18 years, took the company to a payment processor and little known to the gaming sites and pornography to one of the targets of technological investment in the warmest spots in Germany.

He has contributed to the listing of the company on the prestigious index DAX 30 in Germany by 2018, squeezing out one of the lenders the most well-known in the country, Commerzbank.

But Wirecard has seen its share price collapsing from a 100 euros last week, less than 4 euros on Thursday because of the supplementary revelations of his scandal book. The shares of Wirecard were still plummeted by 79% after it was briefly interrupted Thursday morning.

Wirecard had attempted to recover the missing funds, which would be held by two banks in the Philippines. But this hunt has been suspended after both banks have denied any commercial connection with Wirecard and that documents purporting to show that the company had deposited funds with them had been falsified.

The Philippines is looking to regain the former director of operations of Wirecard, Jan Marsalek – who was fired from the company this week – in the framework of a survey of persons who were allegedly involved in the case.

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