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19.06.2020

Wirecard shares keep bleeding amid cash issue

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The auditors could not confirm the existence of $2.1 billion in cash on the company’s balance sheet

Stocks impacted: Wirecard (WDI)

The German payments processor plunged over 60% after the company postponed its annual results once again and said auditors could not confirm the existence of $2.1 billion in cash on its balance sheet. Wirecard admitted that this amount of cash has gone missing months after executives were accused of forging accounts and inflating sales. Wirecard warned that a failure to provide certified annual and consolidated statements by Friday would allow approximately 2 billion euros in loans to be terminated. As a reminder, the firm had already delayed its annual report earlier after the KPMG report, which addressed allegations of fraud and false accounting in a series of Financial Times reports. After yesterday’s plunge, Wirecard shares declined by another 40% on Friday and staying under the selling pressure during the European session.

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