logo
Plus   Neg
Share
Email

Wirecard Says Missing EUR 1.9 Bln Probably Doesn't Exit; Withdraws Results

Wirecard AG (WRCDF.PK) said that the missing 1.9 billion euros of cash on its balance sheet probably does not exist. The company withdrew its preliminary results for the financial year 2019 and the first quarter of 2020.

"there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist," the company said in a statement.

The scandal-hit German payment firm said it continues to be in constructive discussions with its lending banks with regard to the continuation of credit lines and the further business relationship, including the continuation of the current drawing coming due at the end of June.

Wirecard noted that it is assessing options for a sustainable financing strategy for the company.

In addition, the company stated that it is examining a broad range of possible further measures to ensure continuation of its business operations, including cost reductions as well as restructuring, disposal or termination of business units and products segments.

Meanwhile, the central bank of the Philippines reportedly said on Sunday that 1.9 billion euros belonging to Wirecard had not entered the country's financial system. The announcement comes after reports said that the money was held in two Philippine banks, BDO Unibank Inc and Bank of the Philippine Islands.

On Friday, the company said that its chief executive officer Markus Braun resigned with immediate effect. Incoming management board member James Freis has been appointed as interim chief executive officer.

On Thursday, Wirecard suspended the member of the Management Board Jan Marsalek on a revocable basis, after revealing that auditors couldn't find about 1.9 billion euros in cash.

Wirecard's auditor Ernst & Young had informed the company that no sufficient audit evidence could be obtained so far of cash balances on trust accounts in the consolidated financial statements in the amount of 1.9 billion euros, about a quarter of the consolidated balance sheet total.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT