Wirecard’s Cash Crunch Reaches Staff as Salaries Fail to Arrive

Wirecard AG employees in Germany haven’t yet received their June paychecks as the company’s collapse hits staff, people familiar with the matter said.

Salaries were due on Friday, the people said, asking not to be identified because they weren’t authorized to speak to the media. Wirecard has about 5,800 employees, according to the company’s website. A representative for Wirecard declined to comment.

The Financial Times previously reported that June salaries had been suspended in Germany and other regions.

Read more:How German Fintech Darling Wirecard Fell From Grace: QuickTake

Wirecard filed forinsolvency last week and law-enforcement agencies have issued arrest warrants against several former executives, including ex-chief executive officer Markus Braun, after it said that 1.9 billion euros ($2.1 billion) was missing and likely didn’t exist. The share price has collapsed by about 95% since the missing money was disclosed two weeks ago.

Wirecard rapidly drew down its credit lines ahead of the scandal, Bloomberg reported previously. It owes about1.6 billion euros to a consortium of 15 banks, people familiar with the matter have said.

Read more:What Wirecard Says About Europe’s Tech Scene: Fully Charged

The U.K. Financial Conduct Authoritysaid Tuesday that it has been working closely with the Wirecard U.K. unit and is now in a position to allow the company to resume operational activity, afterfreezingcustomer accounts.

The fallout is shaking up Germany’s financial landscape. Frankfurt stock exchange operator Deutsche Boerse AGis also planning changes to rules for its benchmark index and lawmakers are moving to overhaul the regulation of financial companies.

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