The filing caps a spectacular unravelling that began a week ago with Wirecard’s admission that €1.9b of cash was missing and on Monday saw Markus Braun, its former chief executive, arrested on suspicion of false accounting and market manipulation before being released on bail pending enquiries.
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Wirecard files for insolvency after revealing accounting hole
“The management board has come to the conclusion that a positive going concern forecast cannot be made in the short time available,” it said, adding that it would try to go through a reorganization once an insolvency administrator is appointed by the court. Under German insolvency law, a court will appoint an administrator who will look into the company and decide whether it can be restructured as a viable business or should be liquidated. In the meantime, the company is protected from creditors.
