Wirecard collapses with debts of more than £3bn in Germany’s worst accounting scandal
Crisis-torn Wirecard has collapsed with debts of more than £3billion in Germany’s worst accounting scandal.
The financial technology company said it would make a filing at a district court in Munich ‘due to impending insolvency and over-indebtedness’.
The implosion came a week after auditor EY refused to sign off the payment systems provider’s 2019 accounts, forcing out chief executive Markus Braun and leading Wirecard to admit that £1.7billion of its cash probably did not exist.
Wirecard chief exec Markus Braunwas forced to resign after auditor EY refused to sign off the payment systems provider’s 2019 accounts
The scandal saw Braun arrested on suspicion of market manipulation and inflating financial numbers earlier this week before being freed on bail.
Wirecard has a UK subsidiary, Wirecard Card Solutions Ltd in Newcastle, and its most recent accounts showed it had 69 staff.
Adding to the damage to Germany’s corporate reputation was the reaction of the financial regulator, Bafin, when media reports last year questioned the company’s accounting.
Rather than investigate Wirecard, it targeted investors in what one German politician described as ‘a documented failure of supervision’.