Wirecard North America, a subsidiary of the ill-fated German company of the same name, says its for sale, free and clearnof any obstacles related to the parent company’s insolvency. I admit I don’t know German bankruptcy law, but in the US creditors would be putting in claims for every penny of identifiable assets. So its not quite clear how it can put itself up for sale so quickly.
Wirecard North America was formerly Citi Prepaid, and before that Ecount, a famed Conshohocken startup.
Wirecard acquired Citi Prepaid in 2016.
On Monday, a Munich court appointed a preliminary administrator for the parent company after it filed for insolvency last week. The company admitted $2.1 billion was missing and probable never existed.
Wirecard’s German employees have not been paid for June, according to reports.
Seth Brennan, Managing Director of Wirecard North America, said in a statement: “Wirecard North America continues to operate without any disruption to clients and cardholders. The strong, independent cash flow and financial position of Wirecard North America allow us to operate the business on a completely standalone basis. Our valued customers and partners remain our top priority, while the dedicated North America team continues to ensure that there is no interruption in our day-to-day processes.”