Wirecard says lack of $ 2 billion probably does not exist, the action crash

0
70


Wirecard shares are once again in free fall on Monday after the German payments firm said that it was likely that the 1.9 billion euros ($2.1 billion of cash missing from its balance sheet does not exist.The Munich-based company said that it was the assessment of the “current probability” that the inventory of the cash balances marked by the statutory auditors ernst & young, last week ” do not exist. “The loss of funds represent about one-quarter of Wirecard the balance sheet.

Shares of Wirecard crashed at about 45% shortly after the opening bell. Its stock price was last trading down 36%.

The research for the lack of cash appeared to hit a deadlock at the end of two Asian banks deemed to have a lack of cash of the Philippines, BDO and BPI, the two denied to have Wirecard as a client. Compounding these fears, the Philippines, the central bank, said on Sunday that the money had not even yet entered into the financial system of the country.

“The initial report is that no money is entering the Philippines,” Bangko Sentral ng Pilipinas Governor Benjamin Diokno, said on Sunday, adding the name of BDO and BPI have been used in an attempt to cover the perpetrators of the track. ”

Both BDO and BPI, said that employees falsified documents to indicate the existence of the funds.

The admission that the money may not even exist, this is yet another troubling revelation of Wirecard, which is fighting for its survival in the midst of a deepening accounting scandal.

Wirecard CEO Markus Braun abruptly resigned Friday, a day after the company said EY had refused to sign the 2019 accounts. Before its release, Braun suggested that this was Wirecard, which may have been the victim of “substantial” fraud.

The saga has put Wirecard’s future in doubt. The payments processor, once regarded as one of Germany’s top high-technology companies, said Monday that it had withdrawn its assessment of the preliminary financial results for 2019, the first quarter of 2020 and profit forecasts for the current year. He added that ” the potential effects on the annual financial accounts of the previous years cannot be excluded. ”

Wirecard says that he is in “constructive discussions” with the lenders on continued access to credit and that it is working with the investment bank Houlihan Lokey in the ” evaluation of options for a sustainable financing strategy. “The company is also looking to potentially reduce the costs of restructuring and of the disposal or the cessation of certain business units.

LEAVE A REPLY

Please enter your comment!
Please enter your name here