Wirecard Wins Short Reprieve as Banks Scan Long-Term Damage
- Banks seek to judge long-term viability of scandal-hit firm
- Standstill agreement in place only expected to last short time
The Wirecard AG headquarters stand in Munich.
Photographer: Michaela Handrek-Rehle/BloombergThis article is for subscribers only.
Wirecard AG won a short reprieve from the lenders on its 1.75 billion euros ($2 billion) revolving credit facility after banks decided to assess the embattled company’s long-term viability before telling it to repay the loan.
Advisory firm FTI Consulting is monitoring Wirecard’s compliance with the loan terms as lenders sift through documents and speak with stakeholders including Visa Inc. and Mastercard Inc. to decide how best they can secure the highest repayment, people familiar with the matter said. A standstill agreement is only expected to last a short period before lenders make a final decision, the people said, asking not to be identified discussing the private information.