Wirecard shares plunge 50% as it delays results again
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[BERLIN] German payments company Wirecard again delayed the publication of its 2019 annual report on Thursday, sending its shares 50 per cent lower as it warned the delay could trigger billions in loan covenants on Friday.
Wirecard said in a statement that auditor EY had informed it that no sufficient evidence could be found for 1.90 billion euros (S$2.98 billion) in cash balances on trust accounts - or around a quarter of its balance sheet total.
There were indications, Wirecard added, that these balances were "spurious" and had been provided "in order to deceive the auditor".
"The Wirecard management board is working intensively together with the auditor towards a clarification of the situation," the company said.
Further, Wirecard warned that, if it cannot provide certified annual and consolidated statements by Friday, this would allow approximately 2 billion euros in loans to be terminated.
REUTERS
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