Wirecard credits: buyers are cautious
Gloomy prospects for Wirecard lenders: numerous banks are currently having considerable difficulties in finding buyers for their Wirecard receivables, as reported by the financial news agency Dow Jones with reference to “informed persons”. According to the article, even the largest financial institutions in Europe are currently assuming that they will only recover one fifth of the total of around two billion US dollars that they once lent to the insolvent financial services provider.
Wirecard loans are currently only traded for a fraction of their face value, which, according to Dow Jones, the Lloyds Banking Group has now also discovered: Wirecard owed the British bank around 120 million euros – a receivable which the bank has now sold to hedge funds with an NPL focus for a cut price of around 18 cents per euro. A similar picture is emerging for other outstanding loans: The corporate bonds issued by Wirecard are currently traded for only 13 percent of their original value, convertible bonds for around 12 percent.
The financial scandal surrounding the former Fintech high-flyer Wirecard has been causing a stir for weeks. After it had become clear since mid-May that a full 1.9 billion euros were missing from the 2019 annual balance sheet, the share price of the payment service providers plummeted dramatically. Shortly afterwards, Wirecard finally filed for insolvency. According to the Dow Jones report, investment bankers and restructuring experts now assume that the company will not be able to settle its debts sufficiently. Pymnts, Dow Jones