After falling more than 80% last week, Wirecard AG (OTC:WRCDF)(OTC:WCAGY) on Monday pulled its previously-reported preliminary earnings results for the entire financial year 2019 and the first quarter this year.
What Happened: "The Management Board of Wirecard assesses on the basis of further examination that there is a prevailing likelihood that the bank trust account balances in the amount of 1.9 billion EUR do not exist," the German payments company said in a statement.
Wirecard noted that it's continuing to work towards keeping itself afloat, including holding "constructive discussions" with its lender to continue an existing revolving credit line facility, which is due at the end of this month. The company is also exploring cost-cutting measures, alongside "disposal or termination of business units and products segments."
Why It Matters: Last week, Ernst & Young discovered accounting irregularities of $2.1 billion in the company's balance sheet. Wirecard Chief Executive Officer Markus Braun abruptly resigned on Friday after two banks in the Philippines, which were purportedly holding the money, denied the claim.
Price Action: Wirecard WRCDF shares closed 34% lower at $27.60 on Friday.
Photo credit: Leo Molatore via Wikimedia