WHAT WAS THE KLIKANDPAY SOLUTION MANAGED BY CYBERSERVICES GROUP?
KLIKANDPAY solution was a competitor of Paypal.
Merchants selling services or products via internet would use the KLIKANDPAY platform to have payments from their clients processed by CYBERservices group.
Some payments made by VISA cards had to also be processed by Wirecard.
Consequently a payment process with a VISA card would mean that payment instructions would be given from the client to Wirecard, approved by VISA, and money transferred by Wirecard to a segregated bank account in the name of CYBERservices Europe s.a. and then transferred to the merchants.
In May 2019 on the basis of information provided by Wirecard to EY Luxembourg, the latter asked the CFO of CYBERservices Europe S.A. to reduce its receivables by a 7 digit number.
After this reduction it was decided that CYBERservices Europe S.A. was not in position to cover or pay its debts towards its merchants.
The CSSF decided to suspend the license of CYBERservices Europe S.A.
The shareholders were not able to provide explanations as to where the gap between debts and receivables came from and tried to find investors to cover the missing amount.
Suspension of the license implied that NO payment from the bank accounts in the name of CYBERservices Europe S.A would be allowed.
Consequently money owed to merchants could not be paid.
Authorities and auditors assumed that data provided by the Klikandpay platform and by the books of CYBERservices group were not reliable.
While looking for a refinancing, the dedicated team of CYBERservices group spent months reviewing dozens of thousands of transactions to find out why there was so much money missing.
It turned out that
- The platform Klikandpay was reliable and performant
- Wirecard was the one who issued erroneous data
- Wirecard owes more than 4 million euros to CYBERservices Europe s.a.
Due to this situation CYBERservices Group is in a state of insolvency.
Judicial receivers will have to deal with Wirecard to claim this money back.
Theoretically there should have been enough money and receivables to pay all merchants and any debt owed by the Group to creditors.
WHAT ABOUT THE SEGREGATED BANK ACCOUNTS ?
Some merchants filed attachment procedures (saisie arrêt) which meant that the accounts may only be released after the finalization of judicial procedures.
While filing claims with the judicial receiver and the CSSF, some merchants decided to increase the amounts stated in their claims as opposed to what CYBERservices Europe s.a. really owes them.
Consequently to process such claims will take many years.
Until the exact figures of amounts due to merchant are defined by judicial procedures, no distribution of money from the segregated bank accounts should occur.
Document drafted with the assistance of Me PF ONIMUS, Avocat à la Cour, who represents the interests of the shareholders of CYBERservices Group.