German online payment company Wirecard files for bankruptcy
In a two-paragraph press release only, Wirecard explains that it has started bankruptcy proceedings in a Munich court. REUTERS / Michael Dalder
Text by: RFI Follow
A week after the start of the Wirecard scandal in Germany, events are rushing. The online payment company announced on June 25 its bankruptcy after it was learned last week that fraud had led to a financial deadlock of 1.9 billion euros in the company's budget.
From our correspondent in Berlin , Pascal Thibaut
Never has a descent into hell been so rapid for a company listed on the Dax, the index of the German stock market elite. A week after the start of the Wirecard scandal , the online payments company, once the darling of investors, files for bankruptcy due to a " threat of insolvency and over-indebtedness ".
An understatement since almost two billion euros which appeared in the balance sheet of the company have disappeared. The company's share price on the Frankfurt Stock Exchange lost 90% of its value. For a week, the twists are linked after an audit firm discovered the pot of roses. The company's CEO resigned before being arrested and released on bail. The Munich public prosecutor's office opened proceedings against Markus Braun and three other Wirecard officials. The future of the company, which has 6,000 employees and 26 branches around the world, is in the hot seat.
This scandal also tarnishes Germany's reputation and poses many questions about the weaknesses of the control mechanisms of business leaders. Finance Minister Olaf Scholz criticized the financial market supervisory authority on Tuesday (June 23rd) and spoke of possible tougher legislation.
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