(Wall Street Journal) – The bankruptcy administrator has sold the US operations of the bankrupt German fintech to a company backed by buyout specialist Centerbridge Partners LP, as it continues to dismantle the remains of the company and make money for creditors.
The director did not say how much Texas-based Syncapay Inc., whose investors also include private equity firms Bain Capital Ventures and Silversmith Capital Partners, paid for the unit. The US branch has remained a largely autonomous and separate legal entity since Wirecard acquired the company from Citigroup Inc.
in 2016. It issues prepaid cards, which are often used as consumption vouchers or for reimbursements by companies.
Wirecard’s investors have bet on this sale and it is unlikely that others, supervised by the administrator, will generate any significant proceeds. The company has a total market value of approximately 74 million euros, or $ 87.5 million. Wirecard initially paid around $ 300 million for the U.S. operation, according to a person familiar with the matter. That said, the scandal has raised questions about the company’s accounting of its assets.
Wirecard collapsed in June after listeners found a $ 2 billion hole in its balance sheet. German prosecutors are investigating former Wirecard officials for accounting fraud and money laundering.