Wirecard files for insolvency following accounting crisis


Wirecard AG officials said the company has filed to open insolvency proceedings at a Munich Local Court amid the risk of insolvency and indebtedness, which follows disclosures that the company cannot account for 1.9 billion euros ($2.1 billion) in sales, according to a company statement.

The German-based payments company has entered negotiations with lenders following the recent disclosures, however, the company said that without an agreement the loans worth $896 million (800 million euros) on June 30 and $560 million (500 million euros) on July 1 could be terminated.

Wirecard’s management board cannot make a positive forecast that it can continue operations in the short time available and therefore cannot make any assurances about the company’s ability to continue as a going concern.