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Wirecard's Board Of Governors Questioned The Existence Of 1.9 Billion Euros In Its Accounts

Wirecard's Board Of Governors Questioned The Existence Of 1.9 Billion Euros In Its Accounts

The Board of governors of Wirecard AG believes that the accounts of the German FINTECH company could not exist 1.9 billion euros, the lack of which was discovered by auditors Ernst & Young.

The company has withdrawn its financial statements for 2019 and the first quarter of 2020, as well as forecasts of financial indicators.

Wirecard's shares plunged by more than 75% in two days due to news that auditors could not confirm that the company had this amount or about a quarter of all funds on its balance sheet.

Wirecard CEO Marcus brown has resigned amid a growing scandal.

On Monday, June 22, the company said that as a result of further verification, the Board of governors concluded that there was "a prevailing probability that funds of 1.9 billion euros did not exist in the company's accounts."

Wirecard is in "constructive talks" with lenders about its credit lines and loans, which expire at the end of June. She also evaluates financial options with investment banking specialists from Houlihan Lokey.

The company is considering cutting costs, as well as "restructuring, selling or terminating operations of divisions and product segments."

Shares of Wirecard in the course of trading on Monday fell by 34.9%.

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