Wirecard's auditor has refused to sign off its 2019 accounts over a missing $2.1 billion, sending its shares down more than 60% as the German payments firm warned the delay could cause billions in loans to be called in as early as Friday. EY was unable to confirm the existence of 1.9 billion euros ($2.1 billion) in cash balances on trust accounts, representing around a quarter of its balance sheet, Wirecard said, adding that there was evidence of "spurious balance confirmations". Wirecard's chief executive Markus Braun said in Thursday's statement that the company, which was founded in 1999, was urgently seeking to clarify the balances in question....
Wirecard's auditor has refused to sign off its 2019 accounts over a missing $2.1 billion, sending the German payments firm's shares down over 60% on Thursday as it warned the delay could cause billions in loans to be called in as early as Friday. Wirecard said auditor EY had informed it that sufficient evidence could not be found for 1.9 billion euros ($2.1 billion) in cash balances on trust accounts - or around a quarter of its balance sheet total. CEO Markus Braun said Wirecard was urgently seeking to clarify the balances in question....
German payments company Wirecard said that its auditor had refused to sign off on its 2019 accounts, sending its shares 60% lower on Thursday as it warned the delay could mean billions in loans are called in as early as Friday. Wirecard said that auditor EY had informed it that sufficient evidence could not be found for 1.9 billion euros ($2.1 billion) in cash balances on trust accounts - or around a quarter of its balance sheet total. There were indications, Wirecard added, that these balances were "spurious" and had been provided "in order to deceive the auditor"....
This is the first time the company has raised money by issuing hybrid bonds, which place less strain on balance sheet as the principal is not required to be repaid, the spokeswoman said. Like its rivals, the British oil major is set to take a big hit to revenue from an unprecedented collapse in demand due to the coronavirus outbreak....
(Bloomberg) -- Wirecard AG, the German payments firm that’s fending off allegations about its accounting, delayed the publication of its annual financial results for the fourth time after auditors were unable to find about 1.9 billion euros ($2.1 billion) in cash. The shares collapsed.Ernst & Young was unable to confirm the location of the cash balances in certain trust accounts, and there was evidence that “spurious balance confirmations” had been provided, Wirecard said in a statement on Thursday. That’s about a quarter of the consolidated balance sheet total, Wirecard said.“It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred,” said Wirecard’s Chief Executive Officer Markus Braun. “Wirecard AG will file a complaint against unknown persons.”The stock dropped as much as 67% to 35.85 euros in Frankfurt on Thursday, the biggest fall on record and one of the largest for a member of Germany’s prestigious 30-company DAX...
(Bloomberg) -- American stock futures fluctuated along with European equities on Thursday as investors weighed reports of fresh progress in containing a coronavirus outbreak in Beijing. Treasuries advanced.The moves came after a top virus expert in China said that new cases in the capital were being curbed. The Stoxx Europe 600 swung between losses and gains, with German payments firm Wirecard AG slumping as much as 67% after it delayed publication of annual financial results for the fourth time. Asia stocks edged lower. The pound weakened ahead of a Bank of England decision in which policy makers are expected to add to economic stimulus. The picture for global markets remains complex as investors mull the latest reports on the virus. With countries emerging from lockdowns, fears of a second wave are increasing, with Texas reporting an 11% surge in hospitalizations and China battling its worst outbreak since Wuhan. Investors are balancing...
