Wirecard files for insolvency after the German fintech firm’s former boss was arrested and it admitted missing £1.7bn probably doesn’t exist
- The German payments group has filed for insolvency in the midst of a scandal
- Former boss Markus Braun was arrested earlier this week and released on bail
- Wirecard’s demise marks the first time in the German DAX’s 32-year history that a company in the index has become insolvent
German payments company Wirecard has filed for insolvency as it finds itself embroiled in a major accounting scandal.
The company has admitted to a huge black hole in its finances topping £1.7billion and the insolvency filing has emerged days after the company’s former boss, Markus Braun, 51, was arrested over the matter.
Braun was, according to German media, arrested after presenting himself to police and was released on bail earlier this week after stumping up over £4.5million.
Markus Braun, 51, was arrested on suspicion of falsifying the group’s accounts
Earlier this month, Wirecard announced that around £1.7billion worth of cash was ‘missing’ from the company.
On Wirecard’s insolvency, a company statement said: ‘The management board of Wirecard AG has decided today to file an application for the opening of insolvency proceedings for Wirecard AG with the competent district court of Munich (Amtsgericht München) due to impending insolvency and over-indebtedness.’
Revealing the extent of the scandal which has emerged, the company’s shares have been suspended from trading in Frankfurt, after the share price slumped over 90 per cent in less than a week, revealing the magnitude of the debacle that has emerged.
Wirecard’s torrid demise marks the first time in the German DAX’s 32-year history that a blue-chip company in its index has filed for insolvency.
Wirecard’s torrid demise marks the first time in the German DAX’s 32-year history that a blue-chip company on its index has filed for insolvency
Earlier this month, Wirecard announced that around £1.7billion worth of cash was ‘missing’ from the company