London (CNN Business) Wirecard has filed for insolvency, just days after a $2 billion accounting scandal at the company burst into the open, crashing its stock and leading to the arrest of its former chief executive. The digital payments company said in a statement Thursday it had opened legal proceedings in Munich "due to impending insolvency and over-indebtedness." Wirecard acknowledged on Monday that €1.9 billion ($2.1 billion) in cash included in financial statements — or roughly a quarter of its assets — probably never existed in the first place. The company withdrew its preliminary results for 2019, the first quarter of 2020 and its profit forecast for 2020. In a statement Thursday, Wirecard said its bankers were threatening to call in loans worth €1.3 billion ($1.5 billion) by July 1, and in the absence of an agreement with creditors, its future as a going concern could not be assured.

Source: CNN June 25, 2020 09:45 UTC