Thailand won't post 20-million-euro bond for release of royal jet

[News_Editor]

Thailand won't post 20-million-euro bond for release of royal jet

2011-07-21 21:46:47 GMT+7 (ICT)

BANGKOK (BNO NEWS) -- The Thai government will not pay a 20-million-euro bond to guarantee the release of the impounded aircraft used by Crown Prince Maha Vajiralongkorn, Foreign Minister Kasit Piromya said Thursday.

A German court ruled on Wednesday that the Thai crown prince's aircraft, which was seized by Germany last week, did not belong to the Thai government and agreed to release it on the condition that a 20 million euro ($28.4 million) bank guarantee must be deposited.

According to Thai News Agency MCOT, Kasit explained that the court ruling is a provisional measure. He added that the Thai government has submitted all necessary documents indicating the Boeing 737-400 is a personal asset of the Crown Prince.

"The court asks us to post 20 million euro bank guarantee but we will not pay this as the ruling is not final and the hearing is set on the second week of August," Kasit said. "We will fight the case with three or four witnesses."

The three witnesses include the director-general of the Department of Civil Aviation, a representative from the Royal Thai Air Force and a Thai legal expert on assets arrangement.

The plane remains at Munich Airport awaiting a final ruling in August, Kasit said.

Last week, Germany seized the aircraft, which is usually used by 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.

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 Southern District Court of New York last year ruled in favour of Walter Bau and ordered Thailand to compensate the firm, but Thailand's Office of the Attorney-General has appealed the ruling.

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