Wirecard's Braun reduced value of loan collateral - report

Sunday, 21. June 2020 20:50

Wirecard's former Chief Executive Markus Braun, who had a major 7% stake at the German company, secured a loan worth €392 million from Deutsche Bank AG back in 2017 by pledging nearly half of his stake as collateral, equivalent to 4.2 million shares, according to a regulatory filing.

Furthermore, Braun had funded his purchase through a 150 million-euro margin loan that was secured by the value of the underlying stocks, according to a report published by Bloomberg on Sunday.

After Wirecard AG's shares tumbled nearly 70% last week and $2.1 billion had gone missing, the pledged collateral's worth became significantly less compared to the time when Braun obtained the loan. So instead of borrowed €392 million, the value sank to just €108 million last Friday, according to sources familiar with the matter.

Related Links: Deutsche Bank AGWirecard AG
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Breaking the News / ND