It is said, Wirecard, the concerned financial technology company that offers many debit cards encoded in the market, has filed for bankruptcy.
According to the Wall Street Journal and others, Wikkard filed a complaint with the Munich Central Court to begin preparations for the dissolution procedures.
The company cited “imminent bankruptcy and excessive debt” as an incentive to submit an application, citing $ 2.1 billion of the lost balance.
Wirecard events happened quickly, as it turned out that 32% of the balance was never present. The company soon became headless when the CEO and other CEOs resigned, and the first was arrested on Tuesday.
Bankruptcy, but not bankruptcy
The insolvency clause means that the company cannot meet its debt obligations in the short term, either because of the negative cash flow or because of the negative balance of the net assets. Given the scale of the accident, this appears to apply to the latter.
According to the most recent calculation in 2018, the company's net profit is around $ 350 million, although investors, given recent history, may want to look closely at the numbers.
During insolvency procedures, companies usually take critical steps to survive, such as reducing employees and costs, restructuring debt, and selling parts of their assets, among others.
Bankruptcy occurs when the company is completely unable to pay its debt obligations. Although insolvency is a prerequisite, this does not imply a total collapse of the company.
As mentioned earlier in Cointelegraph, Wirecard is the issuer of many encrypted debit cards, including Crypto.com, Cryptopay, some Wirex and TenX cards.