Bank of China Weighs Ending Wirecard’s Credit Line
- BOC is still negotiating with Wirecard, decision isn’t final
- Wirecard said billions on balance sheet probably don’t exist
Photographer: Michaela Handrek-Rehle/Bloomberg
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Bank of China Ltd. is discussing ending a credit facility to Germany’s Wirecard AG, a move that would complicate the beleaguered company’s fight for survival after it was engulfed by a multi-billion-dollar accounting scandal.
China’s fourth-largest lender may write off most of the 80 million euros ($90 million) it’s owed and not extend the credit line, said people familiar with the matter, asking not to be identified as the discussions are private. Bank of China -- one of a group of at least 15 commercial banks behind $2 billion in financing to Wirecard -- plans to engage an external legal team to look into how it can minimize losses, they said.