German payments firm Wirecard said it had hired U.S. investment bank Houlihan Lokey to devise a new financing strategy after Moody's slashed the company's rating to junk over the disappearance of 1.9 billion euros.
) to devise a new financing strategy after Moody’s slashed the company’s rating to junk over the disappearance of 1.9 billion euros.
“The downgrade of Wirecard’s ratings and review for further downgrade reflect the accounting irregularities and related implications on the company’s liquidity and financial profile following its failure to publish the already postponed audited consolidated accounts for 2019,” Moody’s said late on Friday.
Following the resignation of Markus Braun as chief executive, Wirecard said in a statement late on Friday that it had hired Houlihan Lokey to overhaul its financing strategy.“The deadline for audited results was June 19, yesterday, otherwise 2 billion euros of loans could be terminated,” said Neil Campling, an analyst at the Geneva-based Mirabaud asset-management company.
The other bank, BDO, told the Philippine central bank that it appeared one of its marketing officers had fabricated a bank certificate. Wirecard said on June 18 that auditors had suddenly refused to accept the certificates confirming account balances, angering leading investors as nearly 10 billion euros was wiped off the company’s market value in two days.
“Just when EY should have played a protective and clarifying role, it left the shareholders out in the cold,” it added.
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