Wirecard files for insolvency amid German accounting scandal
German payments giant Wirecard has filed for
insolvency in the midst of a major accounting scandal linked to a €1.9bn
(£1.7bn) hole in its finances.
The development comes just days after its former
chief executive Markus Braun was arrested on suspicion of falsifying accounts
at the company, which processes tens of billions of euros in credit and debit
transactions every year. He was arrested after presenting himself to police,
according to German media
Braun, 51, was bailed from police custody after
posting a deposit of €5m on Tuesday.
A brief regulatory statement released by the company
on Thursday 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.”
The company’s shares, which have lost around 90% of
their value in less than a week, have been suspended from trading in Frankfurt.