Wirecard says missing €1.9bn likely does not exist
Wirecard said on Monday that it’s likely the €1.9bn missing from its accounts does not exist.
Wirecard Ag
€48.90
19:00 22/03/17
The German payments company, whose shares plunged last week after it said that auditor Ernst & Young was unable to find the sum - meant to be held in escrow accounts at Asian banks - also withdrew its financial results for 2019 and the first quarter of 2020.
The funds represent around a quarter of Wirecard’s balance sheet.
"The management board Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion euros not exist," it said.
The company said it remains in constructive talks with its banks about continuing €2bn euros of debt that were under threat of being called in after its auditor refused to sign off accounts for 2019.
Wirecard said it's working with investment bank Houlihan Lokey to assess "options for a sustainable financing strategy for the company". It is considering a range of measures, including cost reductions, restructuring, and disposal or termination of business units and products segments.
The company’s chief executive Markus Braun quit on Friday a day after the missing money was announced.
At 1530 BST, the shares were down 42% at €14.97.