Wirecard says missing funds most likely do not exist
On Monday, German payment service provider Wirecard (WDI) said that the 1.9 billion Euros ($2.1 billion), which were supposed to be held in two accounts, probably do not exist.
“The Management Board of Wirecard assesses on the basis of further examination that 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 company disclosed that its auditors could not find the accounts containing the 1.9 billion Euros and postponed its annual report last week.
Wirecard said that it is in “constructive talks” with its lenders and has hired investment bank Houlihan Lokey Inc. (HLI) to come up with a financial strategy.
On Friday, Wirecard Chief Executive Officer Markus Braun resigned and was replaced by James Freis.
Wirecard AG was once regarded as a star of the growing financial technology sector. However, its shares have fallen sharply after the company became the subject of multiple Financial Times reports about accounting irregularities in its Asian operations.