Scandal-hit Wirecard files for insolvency in Germany

Jun. 25, 2020 5:29 AM ETWirecard AG (WCAGY)WRCDF, WCAGYBy: Yoel Minkoff, SA News Editor113 Comments
  • German payments company Wirecard (OTCPK:WCAGY) has filed for insolvency proceedings, a week after auditors found a €1.9B hole in its balance sheet (the company later said the money probably didn't exist).
  • Shares were suspended from trading before the announcement, but have fallen nearly 90%, wiping out almost $12B of market value since the disclosure last week.
  • Wirecard management cited "over-indebtedness" as the reason behind the decision to seek court protection in Munich and is considering whether the proceedings should also be applied to subsidiaries.

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