The Munich District Court has opened the bankruptcy proceedings against Wirecard and announced that it will lay off more than half of the employees in Germany. According to the insolvency administrator Michael Jaffé, around 730 employees have to go. However, around 570 women could remain employed at the Aschheim location - around 350 of them in the insolvent companies and around 220 in the non-insolvent Wirecard Bank.

Two months after the payment service provider filed for insolvency, the power of disposal over the assets of Wirecard AG and six German Wirecard companies was transferred to the insolvency administrator. Now the company has to generate and pay the salaries of the employees itself, said Jaffé.

Under the preliminary insolvency administration it was possible to "stabilize the current business and create the basis for further continuation". But in order to continue the company and to have the option to exploit the core business, profound cuts are urgently required. Rental and leasing contracts would also be terminated.

Management board contracts are also to be terminated due to insolvency

According to Jaffé, board contracts are also affected by the terminations. The board member responsible for products, Susanne Steidl, and CFO Alexander vonKnoop stayed after filing for bankruptcy in June. Ex-boss Markus Braun is in custody, Asia director Jan Marsalek is on the run. The four and other managers are being investigated for fraud, among other things.

In the sales process for the core business and the non-insolvent Wirecard Bank AG "we are currently in negotiations with several well-known interested parties about an acquisition. The proceeds from the sale will benefit the creditors," said Jaffé. The exploitation of further Wirecard investments worldwide is making progress. The first creditors' meeting will take place in Munich on November 18.

Stock exchange - Wirecard flies out of the Dax earlier The insolvent payment processor will leave the German benchmark index next week. The delivery service Delivery Hero is expected to move up. © Photo: Reuters TV

The payment service provider Wirecard admitted air bookings of 1.9 billion euros in June and filed for bankruptcy. The Munich public prosecutor's office assumes that Wirecard has shown false profits since 2015. The damage to the lending banks and investors could add up to 3.2 billion euros.