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Shares of German payments processor Wirecard plunged for a second day on Friday, as the troubled firm faces the risk of banks terminating loans.
Wirecard shares WDI, -45.99% dropped over 40%, after having dropped over 60% on Thursday when it revealed it was missing €1.9 billion of cash, roughly a quarter of its balance sheet.
The DAX component DAX, +1.03% has said it might be the victim of a fraud. The chief executive of a Philippines bank involved in the investigation told Bloomberg that documents had been forged.
Banks have the ability to terminate €2 billion worth of loans if Wirecard can’t finalize its 2019 accounts on Friday, according to Wirecard. Analysts at UBS said that is likely a reference to a €1.75 billion syndicated loan, on which Wirecard has drawn down €1 billion.
Wirecard sold a €900 million convertible bond to SoftBank Group in April.
