Last week the payment service provider Wirecard filed for bankruptcy because two billion euros are missing from the balance sheet. Now it also affects five subsidiaries of the Dax group.
The accounting scandal at the Dax Corporation Wirecard after the parent company now also affects five subsidiaries financially. As the Munich District Court announced on Thursday, these five companies have now also filed for bankruptcy. The preliminary insolvency administrator is, as with the mother Wirecard AG, the lawyer Michael Jaffé.
All five subsidiaries, like Wirecard AG, are located in the Munich suburb of Aschheim, which are companies that offer services and software for the parent company. These include the sales and marketing company Wirecard Global Sales and the software company Wirecard Issuing Technologies.
The Wirecard Group had admitted that the annual balance sheet lacked 1.9 billion euros and that the money probably does not exist. The share price then plummeted – a share now only costs around three euros. In mid-June it was still more than 100 euros. A week ago, the Wirecard parent company filed for bankruptcy.
Investor protection: “Don’t need undead in the Dax”
Shareholder protectors are now demanding that the scandal company Wirecard be immediately removed from the German stock index (Dax). So far, Wirecard’s remaining in the leading German index is not good for the Dax, the stock exchange and Germany as a location, said the managing director of the German Protection Association for Security Ownership (DSW), Marc Tüngler, of the “Neue Osnabrücker Zeitung”.
The next review of the composition of the Dax is scheduled for September. However, this is too late for Tüngler. The German stock exchange can now not adhere to its rules, but must react – “to protect other companies and the stock culture”.
Only “good companies” should be in the Dax and not “those that are broke or cheated”. The shareholder protector emphasized that other indices such as the EuroStoxx had already acted and that Wirecard had passed after the company’s bankruptcy application. “We don’t need an undead or a memorial in the Dax,” said Tüngler.