German payments firm Wirecard said it had hired US investment bank Houlihan Lokey to develop a new financing strategy as Moody’s slashed the company’s rating to junk following the disappearance of 1.9 billion euros.

The company is desperately seeking to reassure investors after its search for the missing cash hit a dead end in the Philippines, prompting ratings agencies to react. The company’s CEO quit on Friday.

“The downgrade of Wirecard’s ratings and review for further downgrade reflect the accounting irregularities and related implications on the company’s liquidity and financial profile following its failure to publish the already postponed audited consolidated accounts for 2019,” Moody’s said late on Friday.

The company’s postponement of the audited statements could trigger high and immediate refinancing needs, according to analysts who cover the company, prompting Wirecard to announce late on Friday that it had hired Houlihan Lokey to overhaul its financing strategy.

Neil Campling, an analyst at Mirabaud, said on Saturday “there is no update yet about either the missing 1.9 billion euros or the results of the discussions with the lending banks concerning credit lines.

“The deadline for audited results was June 19, yesterday, otherwise 2 billion euros of loans could be terminated.”

Dutch shareholder group VEB said it would seek compensation from the German firm’s accountants EY.

Reuters