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German court rules seized Thai crown prince aircraft does not belong to government


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German court rules seized Thai crown prince aircraft does not belong to government

2011-07-21 01:57:54 GMT+7 (ICT)

MUNICH, GERMANY (BNO NEWS) -- The Thai crown prince's aircraft, which was seized by Germany last week, will be released after a German court ruled that it did not belong to the Thai government, officials said Wednesday.

The aircraft will be released on the condition that a 20 million euro ($28.4 million) bank guarantee must be deposited, the Foreign Ministry's Information Department deputy director-general Jesda Katavetin told MCOT news agency.

Last week, Germany seized the aircraft, which is usually used by Thailand's Crown Prince Maha Vajiralongkorn, who also flies the aircraft himself on occasions, arguing that the Asian country has an unpaid debt to a German construction company.

Jesda said the Landshut state court had initially believed that the airplane, which is registered in Thailand, was not connected to the government and needed to post a bond before the aircraft could be released to Thailand. According to media reports, the ruling was based on the aircraft's certificate of registration and assurance in Thailand's Department of Civil Aviation.

According to the ruling, when the court determines that the aircraft belongs to the Crown Prince, it will return the bank guarantee.

Werner Schneider, the insolvency administrator for the Walter Bau construction group is demanding over €30 million ($42.4 million) from the Thai government because a payment was allegedly never received when German construction firm Dywidag helped build a 26-kilometer (16.2-mile) road between Bangkok, Thailand and the city's airport over 20 years ago.

The government of Germany has tried to recover the funds from the Thai government on a number of occasions, but they have been unsuccessful. Schneider previously stated that impounding the aircraft was a drastic measure but "virtually the last resort."

The seized plane is a Boeing 737 - which are listed between $56.9 million to $85.8 million, depending on the model.

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-- © BNO News All rights reserved 2011-07-21

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