BERLIN (Reuters) – Wirecard, the German scandal-hit payments company, said on Saturday it would proceed with business activities after filing for insolvency and expects a provisional administrator to be appointed by judicial authorities shortly.
FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany April 25, 2019. REUTERS/Michael Dalder/File Photo
“The management board is of the opinion that continuation is in the best interests of the creditors,” it said in a statement. “Whether insolvency proceedings will be opened is still under review.”
Wirecard collapsed on Thursday owing creditors almost $4 billion after disclosing a hole in its books that its auditor EY said was the result of a sophisticated global fraud.
The insolvency filing did not include the company’s Wirecard Bank unit, which holds an estimated 1.4 billion euros ($1.57 billion) in deposits