German payments firm Wirecard clambers to find missing $2.1bn as loan crunch looms

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German payments firm Wirecard clambers to find missing $2.1bn as loan crunch looms

Crises oscillating around the lost $2.1 billion from the balance sheet of the German payment processor and financial services provider, Wirecard AG, became more compounded on Thursday after the Aschheim-based German payment processor’s auditors had refused to sign off its 2019 balance sheet over the missing amount, eventually evaporating more than 60 per cent of its market cap in the Frankfurt-listed DAX.

In point of fact, predicament over the missing $2.1 billion could add further strains to the German company, since an improper balance sheet or an absence of a decipherable explanation of the missing amount would in effect lead to a delay of billions of euros in debts scheduled to be called on as early as by Friday, the German payments firm told on Thursday.

Besides, while EY, the London-based auditor of the company, had been unable to confirm whether the money actually existed in cash or on the trust accounts, the German payments firm was quoted saying that it had reasons to believe there had been “spurious balance confirmation”.

Wirecard seeks to find out the frauds amid a likely delay in debts

In the wake of such withering backdrop at Wirecard’s balance sheet, a quarter of which had been missing for a period none could confirm, Wirecard Chief Executive said in a statement on Thursday, “It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred.

Wirecard AG will file a complaint against unknown persons,” adding that the firm had been urgently seeking clarifications of the balance sheet in question. Meanwhile, Wirecard had also told at the later part of the day that it had replaced one of its board members, Jan Marsalek, with immediate effect and had appointed James Freis as management board for compliance, warning that a failure to provide a certified annual statements by Friday would lead to a cancellation of nearly €2 billion in debts.

In concomitance, as the cataclysmic turn in fortune for Wirecard unfolds on Thursday, the shares’ prices of Frankfurt-listed Wirecard AG wraps up the day 61.82 per cent lower to €39.90 a share, digesting a loss of nearly €8 billion in market valuation.