Wirecard Says Missing Cash Likely Doesn’t Exist, Pulls Results

Edwin Chan, Bloomberg News

The Wirecard AG headquarters stand in the Aschheim district of Munich, Germany, on Friday, June 19, 2020. Wirecard shares continued their free-fall after the two Asian banks that were supposed to be holding 1.9 billion euros ($2.1 billion) of missing cash denied any business relationship with the German payments company. Photographer: Michaela Handrek-Rehle/Bloomberg , Bloomberg

(Bloomberg) -- Wirecard AG withdrew its fiscal 2019 and first-quarter 2020 financial results after saying the missing 1.9 billion euros ($2.1 billion) of cash on its balance sheet likely doesn’t exist.

Wirecard has seen its stock collapse and its chief executive officer resign after about a quarter of its balance sheet went missing.

“The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist,” the company said in a statement.

“Wirecard continues to be in constructive discussions with its lending banks with regard to the continuation of credit lines and the further business relationship, including the continuation of the current drawing coming due at the end of June. Together with the renowned and internationally active investment bank Houlihan Lokey, Wirecard is assessing options for a sustainable financing strategy for the company.”

Read more: Wirecard, Once Germany’s Pride, Turns National Embarrassment (1)