Wirecard-News: Filing for bankruptcy at five subsidiaries

Wirecard

The payment service provider faces a loss of customers after the balance sheet scandal.

(Photo: Reuters)

Düsseldorf The insolvent payment service provider Wirecard has also filed for bankruptcy for five subsidiaries. The Munich District Court announced on Thursday. The insolvency administration takes over as for the parent company Michael Jaffé.

The subsidiaries are Wirecard Acceptance Technologies GmbH, Wirecard Sales International Holding GmbH, Wirecard Service Technologies GmbH, Wirecard Issuing Technologies GmbH and Wirecard Global Sales GmbH. Like Wirecard AG, all five subsidiaries are based in Munich’s Aschheim suburb and offer services and software for the parent company.

This doesn’t stop the bad news for Wirecard. It was previously announced that the Japanese technology group Softbank plans to terminate its five-year partnership, reports the Wall Street Journal, citing insiders. In addition, the payment service provider loses one of its most prominent customers: Credit card payments at Aldi Süd will be processed via Payone in the future, the discounter announced on Thursday. At first “finance scene” reported about it.

The Softbank deal in particular had caused a big echo last year: Softbank indirectly invested around $ 1 billion in April 2019 through a convertible bond in Wirecard. The deal was later modified through a complex transaction, so that Softbank ultimately never invested money directly in Wirecard.

However, a “strategic cooperation agreement” was concluded. As part of this, Wirecard should take over digital payments for other companies in its extensive softbank portfolio. Softbank should also support the expansion of Wirecards in Japan and South Korea. Softbank plans to end this five-year agreement early, according to the Wall Street Journal. Wirecard has not yet commented on the report.

It would not be the only setback for the insolvent payment service provider: Because another customer jumped in Aldi Süd. In the future, Payone, a joint venture between German savings banks and the French Ingenico group, will process credit card payments with the supermarket giant.

The Grab rideshare service had previously announced that it would suspend its cooperation with Wirecard until further notice. The French telecommunications group Orange has already announced that it plans to appoint a new payment service provider for its subsidiary Orange Bank. And London’s N26 rival Revolut shifted its customers to alternative payment providers.

Difficult situation for the insolvency administrator

According to financial circles, other customers also want to change and have started discussions with Wirecard competitors after the balance sheet scandal became known. According to the financial news service Bloomberg, credit card companies Visa and Mastercard have already started contacting Wirecard customers to prepare them for the possibility that Wirecard’s access to their networks could be withdrawn.

This is bad news for insolvency administrator Michael Jaffé. The lawyer said on Tuesday evening following a meeting of creditors that “a large number of investors from all over the world had already registered” who had shown interest in the core business or in some areas of Wirecard. Should a customer shrink now, this would significantly reduce the sales value.

It should not be helpful that there is now a suspicion that hundreds of millions of euros could have disappeared into dark channels at Wirecard. According to documents from the auditing firm KPMG, questionable loans to companies in Asia and a mailbox company in Mauritius in the Indian Ocean have resulted in a three-digit million sum, reports the “Süddeutsche Zeitung” (SZ).

The Handelsblatt had previously reported on suspected funds in the hundreds of millions. SZ is now referring to a previously unpublished, 232-page appendix to the KPMG test report. It fits in with the fact that since Wednesday the public prosecutor’s office has not only been investigating suspected falsification of the balance sheet and manipulation of the stock exchange price, but is also considering fraud investigations.

More: Economic crime surrounding Wirecard: Investigators are targeting another ad hoc release.

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