Wirecard And The Case Of The Missing Cash
Market Crumbs | Jun 19, 2020 07:23AM ET
Late in 2018, in a sign of the changing times, fintech company cannot confirm the existence of 1.9 billion euros, or about $2.1 billion, in cash on its balance sheet. The missing balance represents roughly a quarter of Wirecard's overall cash balance.
"The Wirecard management board is working intensively together with the auditor towards a clarification of the situation," Wirecard said.
As a result, Wirecard said the delay in having auditors signing-off on the statements could mean the company will have to call 2 billion euros worth of loans early this week.
Not surprisingly, shares of Wirecard cratered more than 60% on the news to the lowest level since 2016. Shares are now down more than 80% from their 2018 highs when Wirecard was added to the DAX.
One of the big losers in Wirecard's demise is none other than Japan's Softbank (T:9984) which poured $1 billion in the company last year and continues to add to its list of poorly-timed investments.
It appears Wirecard's issues may be far from over.
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