Hearing held in Adria €78 million compensation case

NEWS FLASH

The Kranj District Court in Slovenia conducted a hearing late last month regarding the 78-million-euro compensation claim filed by Adria Airways' bankruptcy administrator, Janez Pustatičnik, against the airline's last managers, Arno Schuster and Holger Kowarsch. The two defendants, who managed the Slovenian flag carrier before its collapse under the ownership of German fund 4K Invest, were absent from the hearing, as were the plaintiff. Only lawyers were present, reportedly agreeing to mediation. The dispute centres on accusations that the management failed to fulfill their legal obligations under insolvency legislation, allegedly causing substantial damage to creditors. The defendants deny the claims, asserting that they committed no wrongful acts or omissions. Adria Airways was sold to 4K Invest in 2016 but declared bankruptcy in October 2019, burdened with tens of millions in unpaid debts. While the bankruptcy administrator acknowledged 88 million euros in claims, the estate yielded only 10 million euros. To date, 5.5 million has been distributed to creditors, 1.4 million remains in the account, and three million euros have covered bankruptcy-related costs. The court previously held a preparatory hearing in April, but the timeline and method for resolving the case remains unclear.