Germany's beleaguered Wirecard to proceed with business after insolvency

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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

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. “It is being continuously reviewed whether insolvency applications also have to be filed for subsidiaries of the Wirecard Group,” the statement said. “With the exception of a small development branch office, no insolvency applications have been filed by Group companies at present.”

Britain’s Financial Conduct Authority has imposed a number of requirements on Wirecard, including not to dispose of any assets or funds, and not carry out any regulated activities.

 

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