Wirecard seeks finance plan after downgrade to junk

Troubled German payments firm Wirecard said at the weekend it has hired US investment bank Houlihan Lokey to “develop a plan for the sustainable financing strategy of the company …”

The development came after Moody’s cut Wirecard’s rating to junk over the disappearance of €1.9 billion euros.

On Friday, Wirecard said: “Wirecard AG can confirm that the company is in constructive discussions with its lending banks with regard to the continuation of the credit lines and the further business relationship.”

Wirecard’s CEO resigned on Friday and the firm is attempting to reassure investors amid its search for the missing money.

“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,” said Moody’s.

The company’s auditors have refused to sign off on its 2019 earnings statements.

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.