Federal Court
Wirecard bankruptcy: BGH decides on shareholder demands
In the Wirecard scandal, shareholders and creditors of the former stock market star lost billions of dollars. But who else gets money from the bankruptcy estate? The question lies in Karlsruhe.
More than five years after the bankruptcy of scandal-hit Wirecard group, the Federal Court (BGH) has dealt with shareholder claims in the financial services provider’s bankruptcy proceedings. The process concerns the question of whether aggrieved shareholders can claim money from the bankruptcy estate as simple creditors. Today Germany’s highest civil court wants to announce its decision.
In this particular case, asset management company Union Investment is seeking damages from Wirecard. He accused the group of faking a non-existent business model for years and misrepresenting its financial situation. If investors knew the truth, they would not buy shares, the investment firm said. Therefore, you are entitled to compensation for the financial losses incurred.
Which claims take priority?
Therefore, Union Investment has submitted a claim of almost 10 million euros to Wirecard’s bankruptcy table. But bankruptcy administrator Michael Jaffé denied the claims. He believes that creditors’ claims have priority in the distribution of bankruptcy assets. Because: Wirecard owes a lot of money, among other things, to its lending banks and former employees.
In contrast, shareholders suffered price losses, but did not lend money to the group or provide other services for which Wirecard still owed them. If their claims were the same amount, other creditors would receive much less money. According to bankruptcy administrator Jaffé, shareholders should only be taken into account if there is still money left at the end of the bankruptcy process – which does not appear to be the case.
Billions in claims in bankruptcy proceedings
According to BGH, around 50,000 Wirecard shareholders have recorded losses of around 8.5 billion euros in the bankruptcy table. In total, Wirecard’s creditors are demanding 15.4 billion euros. However, the bankruptcy value is only around 650 million euros. However, the creditor will probably only receive a small portion of the bill.
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After initially being rejected at the Munich Regional Court, Union Investment’s lawsuit to prove its claims was ultimately successful. In September 2024, the Munich Regional Court of Appeal ruled in a provisional decision that shareholders can declare their claims for damages as simple bankruptcy claims. Now all eyes are on Karlsruhe: Does BGH see it that way too? (Af. IX ZR 127/24)
dpa
