Bank of China Weighs Ending Wirecard’s Credit Line

Bank of China Ltd. is discussing ending a credit facility to Germany’s Wirecard AG, a move that would complicate the beleaguered company’s fight for survival after it was engulfed by a multi-billion-dollar accounting scandal, Bloomberg News reported. China’s fourth-largest lender may write off most of the 80 million euros ($90 million) it’s owed and not extend the credit line, said people familiar with the matter, asking not to be identified as the discussions are private. Bank of China -- one of a group of at least 15 commercial banks behind $2 billion in financing to Wirecard -- plans to engage an external legal team to look into how it can minimize losses, they said. When a borrower breaches the terms of an revolving credit facility, the lenders may decide to renew the agreement, but the decision usually needs unanimity, meaning the borrower may need to repay the entire loan if one bank refuses to sign the deal. Read more

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