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Wirecard Says Wirecard Bank Not Part Of Insolvency Proceedings

Wirecard AG (WRCDF.PK), which decided to file an application for the opening of insolvency proceedings due to the threat of insolvency and over-indebtedness, said that Wirecard Bank AG is not part of the insolvency proceedings.

Germany's financial regulator BaFin has already appointed a special representative for Wirecard Bank AG. In future, the release processes for all payments of the bank will be located exclusively within the bank and no longer at Group level, the company said in a statement.

Earlier today, Wirecard decided to file for insolvency following the arrest of its former chief executive officer Markus Braun, amid a massive accounting scandal that left the German payment-processing firm scrambling to find 1.9 billion euros missing from its balance sheet.

Wirecard said it has come to the conclusion that a positive going concern forecast cannot be made in the short time available. Thus, the company's ability to continue as a going concern is not assured.

The company said it will continue to pursue possible chances of reorganization in coordination with the temporary insolvency administrator to be appointed by the insolvency court.

It is being examined whether insolvency applications must also be filed for subsidiaries of the Wirecard Group.

Wirecard noted that it has conducted negotiations with the lending institutions, taking into account recent developments. In the absence of an agreement with the lenders, there was a likelihood of termination and expiry of loans with a volume of 800 million euros on June 30, 2020, and 500 million eurs on July 1, 2020.

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