A German finance giant making headlines for a scandal revolving around a mysterious missing £1.7bn has an unlikely link with Newcastle.
The business pages have been dominated in recent days by Wirecard, a firm dealing in financial services and cashless payment processing, which is in turmoil and desperately attempting to negotiate a bailout from big banks.
The firm had attempted to explain away the £1.7bn black hole in its balance sheet by saying the money was in bank accounts in the Philippines.
It has now emerged this is not the case and the country's central bank has confirmed the funds never entered the country.
On Friday, the company's chief executive stepped down after the scandal came to a head.
On Monday, the firm admitted the £1.7bn probably doesn't exist, sparking a further meltdown in its share price.
At its peak, the firm was trading at over 190 euros a share. Following the emergence of the scandal and damaging revelations by The Financial Times alleging financial malpractice by people within the company, it is now trading at less than 18 euros a share.
The company attracted big name investors and was classed as one of Germany's 'blue chip' companies, the top tier of the country's private firms deemed rock solid places for wealthy business people to pump their cash into.
Lionel Barber, until recently the editor of The Financial Times, has dubbed the company the 'German Enron', a reference to the collapse of the giant American company which went bust in 2001 following investigations into dodgy dealings.
So what has this got to do with Newcastle? Part of the company - known technically as a 'wholly owned subsidiary' - is actually headquartered in Newcastle city centre. Wirecard Card Solutions Limited is an imprint of the larger Wirecard company, registered as a distinct legal entity but entirely owned by Wirecard AG (the overarching company which owns Wirecard and all its subsidiaries).
It just so happens it is based at Grainger Chambers, Hood Street, just off Grey Street close to Monument.
According to accounts registered with Companies House, as of December 31, 2018, Wirecard Card Solutions Limited had net assets of more than £30m.
The company has four named directors, though it is unclear how many of the staff are physically based in the city.
ChronicleLive approached the company to better understand its operations in Newcastle and find out how it will be impacted by events at the top of the firm. A spokesperson for the parent company said: "Wirecard AG is currently not making any further statements."
There is no allegation of any wrongdoing against Wirecard Card Solutions Limited, its officers or staff.
In an explosive statement which sent the company's share price into freefall on Monday, Wirecard's board admitted there is a 'prevailing likelihood' the missing £1.7bn the company claimed to have in its account 'do not exist'.
The statement confirmed it was looking for a bail out, as is considering 'cost reductions, as well as restructuring, disposal or termination of business units and products segments'.
