The Slovenian police have launched investigations into suspected abuse of office and fraud at the country’s former flag carrier Adria Airways, which declared bankruptcy on September 30, 2019 following three years of management by the German turnaround fund 4K Invest. In particular, law enforcement agencies are looking into allegations of malpractice and the disappearance of some 5.000 US dollars from the company’s safe in the immediate aftermath of its collapse. Pre-trial proceedings are currently taking place. Adria’s bankruptcy administrator, Janez Pustatičnik, told the “Delo” daily that auditors will begin a review of past operations at the company this month, however, there are currently no specific suspicions of misconduct.

Companies affiliated with 4K Invest, including Adria Airways’ former owner AA International Aviation Holding, have entered into liquidation following the collapse of the national carrier last year. The closure of these companies makes it difficult for law enforcement agencies to carry out an investigation and obtain necessary documentation. It is believed the fund funnelled money from Adria Airways and inked a number of highly damaging consultancy agreements on behalf of the Slovenian carrier with other companies in its ownership. 4K Invest has vanished from the business registries in a number of countries following Adria’s demise. Its website has been shut down and its phone numbers disconnected.

The turnaround fund has companies registered in Germany, Malta, the United Kingdom and Luxembourg. The Slovenian Ministry for Infrastructure previously noted, “Minister [for Infrastructure] Alenka Bratušek repeatedly warned that the airline’s sale to the German capital fund was a mistake and that the then government of Slovenia should have found a strategic partner within the aviation industry that would have ensured the long-term existence and development of the carrier”. The Slovenian Prime Minister, Marjan Šarec, branded 4K Invest as “crooks”. 4K’s questionable business moves involving Adria included the sale of its brand name, as well as absorbing the STBE company in December 2018, resulting in Stefan Beulertz, who was the head of STBE, becoming Adria's part owner. Mr Beulertz, a lawyer based in Malta who is close to 4K Invest, was implicated in the Paradise Papers, which exposed the rogue offshore finance industry. Mr Pustatičnik believes Adria’s ongoing bankruptcy proceedings will take four years to complete due to litigations, numerous recoveries and other procedures expected to be launched in Slovenia and abroad.