German payments company Wirecard collapsed yesterday after disclosing a massive financial hole in its books, leaving creditors owed nearly $4 billion facing an almost complete wipeout, Reuters reported. The implosion of the fintech company comes less than two years after it won admission to Germany’s prestigious DAX stock index. Worth $28 billion at its peak, Wirecard becomes the first DAX company to go out of business. Wirecard’s sudden demise leaves creditors owed 3.5 billion euros ($3.9 billion), a source close to talks with creditors said. Of that amount, it has borrowed 1.75 billion euros from 15 banks and 500 million euros from bond investors. Shares were suspended for 60 minutes by the Frankfurt Stock Exchange before the announcement. They have now lost 98% since auditor EY refused to sign the 2019 accounts last week, forcing out long-time CEO Markus Braun.
