Thailand seeks to lift impounding of prince's jet

BANGKOK: Thailand's foreign minister said on Thursday he would fly to Germany to try to convince the authorities there to reverse a court-authorised impounding of a Boeing 737 owned by Thailand's Crown Prince Vajiralongkorn.

Kasit Piromya said he would lead a Thai delegation of diplomats and lawyers to rectify "a great mistake" made by German liquidators to impound the jet in a dispute over money between Thailand and an insolvent German construction firm.

He said he would fly to Berlin on Friday.

German insolvency administrators, armed on Tuesday with court approval to impound the plane, sought payment of an old debt owed by the Thai government to the collapsed German firm.

The debt goes back more than 20 years to when German company Dywidag helped build a 26 km (15 mile) toll road to Don Muang airport, which used to be the main international airport in the capital.

Dywidag merged in 2001 with Walter Bau AG, which later became insolvent.

"We have been seeking payment of more than 30 million euros ($43 million) for years and this drastic measure is virtually the last resort," administrator Werner Schneider said.

The administrators said the legality of the demand had been confirmed by a court of arbitration but, irrespective of the ownership of the impounded plane, the Thai foreign ministry maintains the case has not yet reached a conclusion.

"We would like to clarify that this case has no connection whatsover with His Majesty the Crown Prince. This is a great mistake stemming apparently from false information provided to the German judicial system by the plaintiff," Foreign Minister Kasit told a news conference.

"We have full respect for the German judicial process. The Thai foreign ministry has no intention to interfere with the system in a friendly country but we believe we are in a position to provide it with relevant information and evidence."

"We have forwarded clear, unequivocal evidence that the plane is the personal property of His Majesty, not the Thai government or any state entity," the minister said.

Kasit expressed concern that the impounding order was issued without giving the Thai government a chance to present its case.

"A prompt lifting of the impounding of the plane is our top priority. We don't wish to see this incident dragged on for a single day more lest it affects our mutual friendly relations."

COPYRIGHT REUTERS, 2011