After a week of not so good news, the embattled Wirecard AG caught a rest from lenders that provided 1.75 billion euros ($2 billion) in credit towards the German payment services company, sources told Bloomberg News.
The banks said they will determine the troubled company's long-term viability before requiring Wirecard to repay your debt.
FTI Consulting, the Washington, D.C.-based financial consulting firm, is monitoring whether Wirecard has met the borrowed funds terms, and lenders are reviewing documents and talking with Visa Inc. and Mastercard Inc. to determine the the easy way obtain the loan repaid, based on anonymous sources familiar with the negotiations.
As many as 15 lenders are assessing the extent of potential losses, including ABN Amro Bank NV, Commerzbank AG and ING Groep NV, who've loaned Wirecard 1.6 billion euros ($1.8 million) in credit out of the total facility, Bloomberg reported.
If it comes with an agreement, it's expected that it'll simply be a brief period before lenders create a final decision.
As PYMNTS has chronicled, the saga began a week ago when Wirecard Founder and CEO Markus Braun resigned after auditors revealed that 1.9 billion euros ($2.1 billion) were missing in the German payment processor's accounts in the Philippines.
Ernst & Young, the auditor, said it was concered about letters confirming the existence of the accounts and also the amounts locked in two Philippine banks. The banks confirmed the letters were fakes.
\”The management board of Wirecard assesses based on further examination that there is a prevailing likelihood the bank trust account balances within the amount of 1.9 billion euro do not exist,\” the company said in a statement within hours.
As a result, the firm said hello will withdraw its 2022 and first-quarter 2022 financial results.
On Monday night (June 22), Braun was arrested. The 50-year-old executive faces charges of accounting fraud and market manipulation designed to artificially inflate the FinTech's balance sheet.
Following Braun's arrest, German Finance Minister Olaf Scholz said lawmakers must tighten regulations since the payment services company has embarrassed the nation's financial watchdog.
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