Wirecard's lenders have mandated FTI Consulting as financial adviser in talks with company, people close to the matter told Reuters.

The 15 banks are in discussions on whether to waive covenants on roughly 1.75 billion euros (£1.58 billion) in loans to the German payments firm, which earlier this week disclosed a 1.9 billion euro hole in its balance sheet.

Some of the banks have signalled that they do not for now favour cancelling their loans and sending Wirecard into insolvency, but have demanded full transparency as they seek to recover their money, people close to the matter said.

FTI Consulting declined to comment.

Wirecard's former boss Markus Braun was arrested on Monday evening on suspicion of falsifying its accounts, Munich prosecutors said. A judge ruled on Tuesday that he could released if he posts 5 million euros in bail.

FTI Consulting is a renowned restructuring adviser and is advising Hertz on its Chapter 11 proceedings in the United States. It also represented banks in neogotiations with South African retailer Steinhoff.

FTI's public relations unit has advised Wirecard management in the past, but lost the account earlier this year when the payments company hired Edelmann to do external communications.

(Reporting by Arno Schuetze; Additional reporting by Douglas Busvine and Patricia Uhlig)