Following the major WireCard scandal, the company and six other German firms with links to the fintech controversy will begin with the insolvency procedures. The Munich District Court have commence the insolvency proceedings, and as a result 730 people have lost their jobs.
The current supervisory board has no other choice but to give away all control of the company, and eventually resign. According to the administrator there are other big cuts to be made for the sole purpose of conserving the remaining money.
According to the newly appointed insolvency administrator Michael Jaffé, the rate at which money was been spent after the file for bankruptcy was issued was at an alarming rate, which is the reason for the actions taken.
“The economic situation of Wirecard AG was and is extremely difficult in view of the lack of liquidity and the well-known scandalous accompanying circumstances. The usual restructuring and cost adjustment measures are therefore not enough, because such a massive loss situation cannot be represented in the opened insolvency proceedings at full cost”
There will be a meeting of creditors to discuss the claims for damages, which will take place on the 18th of November, this year.
Media outlets are yet to get a statement from Wirecard.