Wirecard: Insolvency Administrator Publishes 4th Status Report
In the insolvency proceedings relating to the assets of Wirecard AG, insolvency administrator Dr. Michael Jaffé has published his fourth status report at the end of 2022.
In it, Mr. Jaffé makes it clear that one of the focal points of the furhter processing of the proceedings will be the (contentious) enforcement of claims against former executive bodies, such as the former Chairman Dr. Markus Braun. However, the enforcement of the claims would involve a great deal of time and effort. The pending legal disputes are likely to take several more years.
In addition, the insolvency administration worked intensively during the audit period on furthe clarification of the facts. Particular focus was placed on the so-called TPA business (third -party business). To this end, the insolvency administrator was able to inspect the account statements of the trust accounts in question and ascertain that the alleged and accounted TPA transaction could never have existed. Dr. Jaffé thus clearly contradicts the account given by former Wirecard CEO Markus Braun, who is currently standing trial before the Munich Regional Court. Braun denies the allegations made against him. Current information on the criminal trail can be found here.
Are shareholders creditors in the ongoing insolvency proceedings?
According to the insolvency administrator, the question of whether (former) shareholders of Wirecard AG are creditors in the insolvency proceedings in the rang of § 38 InsO or not posed a particular challenge. In this regard, the fund company Union investment had initiated declaratory proceedings. On November 23, 2022, the Munich I Regional Court ruled against the former shareholder and dismissed the action. This means that shareholders cannot register their claims as creditors in the rang of § 38 InsO. Thus, the claims can only be serviced after other creditors (e.g. suppliers and lenders) have been satisfied.
However both the insolvency administrator and we at the law firm Schirp & Partner do not expect this ruling to become legally binding. Rather, the Federal Court of Justive will have to rule on this fundamental issue.
Due to the decision of the regional court Munich a statement of the demands of the shareholders to the insolvency table is not possible at present, communicated the insolvency madministrator further. Bondholders are expressly not affected by this decision.
The next review date has been set for October 19, 2023.
All information on the Wirecard scandal and the possible courses of action for aggrieved investors can be found here on our homepage.