Wirecard's insolvency triggers default for convertible investors

By Aidan Gregory
02 Jul 2020

SoftBank’s repackaged €900m Argentum bonds exchangeable into Wirecard shares are to be liquidated immediately after the German payments company filed for insolvency in June, having disclosed €1.9bn of cash was missing from its balance sheet. This will offer investors a way out or a seat at the table for the looming bankruptcy proceedings.

The liquidation process was triggered by Credit Suisse, the disposal agent, on Wednesday evening. It involves holding a Dutch auction for the collateral held by the Argentum special purpose vehicle: a €900m 1.9% five year convertible bond Wirecard had issued privately to SoftBank in April 2019.

The Argentum ...

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