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Wirecard apparently burned 10 million euros – per week!

A little more light comes into the thicket of Wirecard’s balance sheet: According to the insolvency report, billions in debts have piled up with the now insolvent payment service provider.

The insolvent payment service provider Wirecard has accumulated ever higher losses for years and is overindebted with 2.8 billion euros. This emerges from the report by the insolvency administrator Michael Jaffé, from which the “Süddeutsche Zeitung”, WDR and “Handelsblatt” quoted on Friday. Only a few of the group’s more than 50 companies worldwide had “even their own income”.

Week after week, Wirecard burned the money that banks had lent to the group and invested in, reported WDR and “SZ”. Before the bankruptcy in June it was ten million euros per week.

As early as 2017, the loss of the group should have amounted to 99 million euros, as it is said. In 2018 the minus was 190 million euros, in 2019 around 375 million euros. In the first three months of the year alone, losses of 86 million euros were added.

Can you get money from the auditors?

According to reports, Wirecard has accumulated 3.2 billion euros in liabilities, reported WDR, “SZ” and “Handelsblatt”. This would be offset by 26.8 million euros in freely available bank balances. Even if Jaffé were to sell anything of value at Wirecard, there would still be 2.8 billion euros in debt.

Jaffé is examining legal steps against former responsible persons, especially against ex-CEO Markus Braun and the fleeting ex-CFO Jan Marsalek, reported the media. He is also thinking about claims against Wirecard’s auditor, EY. The auditor had audited the balance sheets from 2011 to 2018.

Wirecard filed for bankruptcy at the end of June. The company had previously had to admit that the balance sheet of 1.9 billion euros, which were supposed to be in Asian bank accounts, could not be found. The Munich I public prosecutor’s office is investigating the case. It assumes professional gang fraud.

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