Former Adria managers slapped with €78 million lawsuit
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The receiver of the bankrupt former Slovenian national carrier Adria Airways has filed a 78 million euros lawsuit against the former company's German managers and owners for the damage they caused to its creditors by financially draining the airline. The suit has been filed against former CEOs Arno Schuster and Holger Kowarsch, as well as other managers that led Adria after the German fund 4K Invest bought the carrier in 2016. Mr Schuster and Mr Kowarsch were also partners at 4K Invest. When Adria declared bankruptcy in October 2019, it owed tens of millions of euros to its suppliers, leasing companies, airports, airlines, employees and other creditors. The lawyers hired by official receiver, Janez Pustatičnik, studied the forensic audit of Adria and found that some managers had violated insolvency legislation. While knowing Adria was insolvent, they did not ask 4K Invest to supply it with fresh capital as promised nor declared bankruptcy. Instead, they addressed Adria's financial problems with "problematic bookkeeping tricks". For this reason, they are liable to pay the difference between the claims and the proceeds from the bankruptcy estate sold. However, analysts believe that the former German management have largely covered their tracks, making it unlikely that enough assets would be found and seized to pay Adria's creditors.
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