(Bloomberg) — Wirecard AG’s important banks are going through potential losses on about 1.6 billion euros ($1.eight billion) of loans to the scandal-hit fintech after it began insolvency proceedings.A bunch of about 15 banks led by ABN Amro Bank NV, Commerzbank AG and ING Groep NV had been negotiating subsequent steps with the agency on a 1.75 billion-euro facility that was about 90% drawn, individuals with information of the matter mentioned earlier this week. Talks on subsequent steps with lenders got here to an abrupt halt with the insolvency submitting that stunned among the banks, individuals with information of the matter mentioned.Wirecard’s determination to file for insolvency caps the swift downfall of the monetary agency as soon as lauded as one in every of Germany’s most profitable up and coming companies. The bank’s descent quickened earlier this week when it mentioned that 1.9 billion euros ($2.15 billion) beforehand reported as cash on its steadiness sheet in all probability doesn’t exist, triggering a collapse within the shares and a prison investigation. Ex-Chief Government Officer Markus Braun surrendered to police after an arrest warrant was issued. He’s since posted bail and is not in custody.Wirecard’s subsidiary Wirecard Bank just isn’t included within the insolvency proceedings, Bloomberg has reported. Deposits on the bank are insured to an quantity of as a lot as 19.7 million euros per shoppers, the German banking affiliation mentioned by e-mail.Lenders to Wirecard didn’t terminate the loan and didn’t precipitate the insolvency, individuals conversant in the matter mentioned. Banks had granted Wirecard a brief reprieve, deciding to not power the agency to repay the loans instantly whereas assessing the corporate’s long-term prospects, Bloomberg has reported.Wirecard additionally has an excellent bond worth 500 million euros and a convertible bond worth 900 million euros.(Provides desk of bank exposures, particulars about Wirecard Bank in fourth paragraph. A earlier model of this story corrected the day Wirecard introduced the beginning of insolvency proceedings.)For extra articles like this, please go to us at bloomberg.comSubscribe now to remain forward with probably the most trusted enterprise information supply.©2020 Bloomberg L.P.