- Wirecard has applied for opening insolvency proceedings.
- It is unclear if trading will be resumed and if it will attract bargain-seekers.
- Future of subsidiaries may be key to the value of ETR: WDI
Wirecard has filed for insolvency – on its way to bankruptcy. The German payments firm made the dramatic move after its CEO Markus Braun was taken into custody – several days after WDI failed to find billions of euros. The company officials said that indebtedness is the primary reason for its filing.
At the time of writing, it is unclear if Wirecard's subsidiaries will also be included in the proceedings. Bloomberg is reporting that Wirecard Bank is excluded, but that may eventually be decided by BaFin, the German regulator.
Lengthy negotiations could have implications for several commercial banks such as Commerzbank, ING, and ABN AMRO.
Will bargain-seekers buy the dip? The Robinhood crowd may cling onto the hopes that the company will claw its way out of the mess. Apart from its subsidiaries, that depends on Wirecard holding onto its deals with Mastercard and Visa.
Wirecard Share Price
Wirecard AG, trading under ETR: WDI, has plunged from just above €100 billion to €10.74 before trading was suspended. The Munich-based firm's price fell to around €1 according to some reports.
WDI Shares have been falling precipitously for several days.
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