HRH Maha Vajiralongkorn Set Aside Money To End Jet Dispute

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HRH Maha Vajiralongkorn Set aside Money to End Jet Dispute

His Royal Highness Crown Prince Maha Vajiralongkorn has graciously given his personal assets to end the aircraft conflict in German Walter Bau's case.

His Royal Highness Crown Prince Maha Vajiralongkorn has graciously provided 20 million euros in cash to tackle the jet dispute, as asked earlier by a German court.

In response to a Berlin state court's verdict on July 11 to require a 20-million euro guarantee deposit for the return of his plane, His Royal Highness Crown Prince Maha Vajiralongkorn said he will pay the sum as he does not wish his name to be tarnished or the Thai-German ties to be affected by the dispute.

After the verdict was given, he said he has not responded to the ruling as he respects the court and believes in the German justice system.

He added that during his stay in Germany, he had an excellent relationship with the German government and the people, and he was treated very well by the country.

As a result, he, as a Thai citizen and the nation's crown prince, would like to pay the deposit to end the problem and also maintain good ties with Germany, and he does not wish to have his dignity eroded by the fiasco.

-- Tan Network 2011-08-01

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Germany Seizes Thai Crown Prince's Aircraft In Debt Dispute

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Thai Delegation to Make Surety Payment for Royal Jet

The Thai delegation handling the dispute between the Thai government and German contractor has been granted the 20-million-Euro surety for the royal Boeing 737 seized at Munich Airport.

Information Department Deputy Director under Foreign Ministry Jessada Katawetin, said the Thai delegation, including the attorney-general and other legal advisers, have been granted audience with the His Royal Highness Crown Prince Maha Vajiralongkorn.

The Crown Prince expressed his compassion to the state, offering to pay the 20-million-Euro surety to free his Boeing 737 being impounded at Munich Airport to avoid further conflict.

The Thai delegation will be tasked with making the payment and bringing back the royal Boeing 737.

Jessada reiterated that when the German Court finally accepts that the jet is private asset of the Crown Prince, the surety would be returned to His Royal Highness.

In addition, the Southern District Court of New York is expected to make progress on the dispute between the German contractor and the Thai government by the middle of September.

-- Tan Network 2011-08-01

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Crown Prince offers personal assets to settle aircraft dispute

BANGKOK, Aug 1 - Thailand's Crown Prince Maha Vajiralongkorn has offered his personal assets to settle a long-running dispute between the Thai government and a German company.

German insolvency officials seized a Boeing 737 used by the Crown Prince while it was parked at Munich airport in southern Germany on July 12. The move was aimed at forcing the Thai government to pay a debt in settlement of a commercial dispute dating back over two decades between Thailand and a now insolvent German construction firm which was building the road link Bangkok's then international airport, Don Mueang.

The Landshut State Court of Germany initially ruled last month that the aircraft was privately owned and not an asset of the Thai government. It said the ruling was based on assurances from Thailand's Department of Civil Aviation and the plane's registration certificate, both of which asserted that the Thai government did not own the plane but that it belongs to the Crown Prince.

But the court said its decision was only preliminary so a bond of 20 million euros (US$28.2 million) was required to be deposited as a bank guarantee. When the court establishes that the aircraft belongs to the Crown Prince, it will return the bond.

The Thai government refused the German demand, arguing that the jet is the personal property of the prince and not the government. Thailand’s Attorney-General Julasing Wasantasing said the dispute between Walter Bau and Thailand, pending the appeals process.

A statement issued on July 31 by the Crown Prince's office said HRH Crown Prince Maha Vajiralongkorn respects the court order and is confident that the judicial process will deliver justice.

Although the Crown Prince was not personally involved in the dispute between the Thai government and Walter Bau AG, but the consequences have tarnished his public image and impacted his royal duties, having marred his personal reputation, according to the statement.

To avoid any further impact on bilateral relations between Thailand and Germany and to end the dispute quickly and amicably, the Crown Prince as a Thai citizen who is grateful to the nation and wants to pay back to the nation, therefore, offers his personal assets to settle the dispute, the statement said. (MCOT online news)

-- TNA 2011-08-01

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Thai prince offers to pay in plane dispute

BANGKOK, August 1, 2011 (AFP) - Thailand's crown prince has offered to pay from his own pocket to end an awkward episode between his country and German authorities, who seized his plane in a long-running debt dispute.

Maha Vajiralongkorn's Boeing 737 was seized at Munich airport on July 12 in a wrangle with the receivers of an insolvent German construction firm, who say they are owed more than 30 million euros ($42 million) by the Thai state.

Last month, a German court ordered the release of the impounded jet upon receipt of a 20 million euro guarantee, after assurances from Thai authorities that it was the private property of the prince and not that of the Thai state.

A statement released by the prince's office late Sunday said that to avoid problems between the two countries, the royal would "offer his personal money to stop the dispute" involving the German firm Walter Bau.

"Even though Crown Prince Maha Vajiralongkorn does not have any part in the dispute between the Thai government and Walter Bau AG, it has affected him and his reputation," the statement said.

It did not make clear how much the prince would pay out.

The German court said it set the guarantee to reflect the estimated value of the plane, which the prince is said to often pilot himself.

Court officials said the guarantee was needed after documents from Thai authorities provided only a "presumption of ownership".

Thailand's Foreign Minister Kasit Piromya flew to Berlin following the seizure of the aircraft, calling the incident a "huge mistake" and meeting a senior German foreign ministry official to press for the plane's release.

The German government had stressed that it was a matter for the courts.

The business spat goes back more than 20 years to the involvement of the German company DYWIDAG, which merged with construction firm Walter Bau in 2001, in building a motorway link between Bangkok and the city's Don Muang airport.

After "numerous breaches of contract by the Thai government", Walter Bau, by then insolvent, in 2007 claimed for damages.

-- (c) Copyright AFP 2011-08-01

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THAI-GERMAN DISPUTES

The Crown Prince to use personal funds to settle dispute

By The Nation

Crown Prince to use personal funds in settling ThaiGerman dispute over jet The Crown Prince will use his personal funds to settle the dispute involving a German firm and the impounding of his personal jet in Germany, his Secretariat said in a statement issued on Monday.

The statement said the move was being made so that the dispute could end well and quickly, and because the Crown Prince did not wish his name to be involved any longer in the dispute as it tarnished his honour.

The statement was issued in response to the German courts' ruling on July 11, allowing Walter Bau AG to impound the prince's personal jet and the ruling on July 20, which said that the jet would be released if the Thai government posted 20 million Euros as a bank guarantee.

The Crown Prince decided to react to the court's ruling as well as local and international news concerning the matter.

The Prince respected the ruling and has confidence in the fairness of the justice system. He also has a good relationship with and has received a warm welcome from the government and people of Germany during his stays and work in Germany.

He decided to act even though he had no vested interests and is in no way involved in the dispute between the Thai government and Walter Bau AG.

"The Crown Prince was not responsible for the dispute but it has caused him great anxiety and has had impact on his activities and risks having a negative impact on his honour," read the statement.

The prince has committed to repay the debt of gratitude to the country as a Thai citizen and the Crown Prince, read the statement.

German insolvency officials seized a Boeing 737 used by the Crown Prince while it was parked at Munich Airport in southern Germany on July 12. The move was aimed at forcing the Thai government to repay a 30-million-Euro debt in a commercial dispute dating back more than two decades between Thailand and Walter Bau, a nowinsolvent German construction firm that was building a road link to Bangkok's Don Mueang airport.

-- The Nation 2011-08-01

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Royal assets to end dispute

By The Nation

Cabinet agrees to accept HRH Crown Prince's recommendations over Boeing seized by German court

The Cabinet yesterday agreed to follow recommendations made by HRH Crown Prince Maha Vajiralongkorn to use his personal assets to settle the dispute with Germany over the impounded Boeing 737 - and to seek a quick end to the dispute with a German firm to avoid damaging relations between the two countries, according to Cabinet secretary Amphon Kittiampon.

Outgoing Prime Minister Abhisit Vejjajiva called a special meeting with Attorney-General Julasing Wasantasing to discuss the cost of the legal battle with German construction firm Walter Bau over the investment conflict.

The dispute between the government and Walter Bau became controversial when German insolvency officials seized the Boeing 737, often flown by the Crown Prince, while it was parked at Munich Airport in southern Germany last month.

The move was aimed at forcing the Thai government to pay compensation owed to the company. The German regional court of Landshut decided later to release the plane if the Thai government paid a ¤20-million deposit (Bt855 million), but the government refused.

The Crown Prince's secretariat issued a statement yesterday offering his personal assets to settle the case to maintain both good relations between the two countries and his personal relations with Germany.

The statement said the move was being made so that the dispute could end well and quickly, and because the Crown Prince did not wish his name to be involved any longer in the dispute as it tarnished his honour.

The Office of the Attorney-General and the Cabinet have acknowledged the Crown Prince's intentions and will follow his recommendation to settle the conflict quickly, Amphon said.

The investment conflict between Thailand and Germany began when the Germans demanded that the Thai government compensate Walter Bau ¤30 million in damages after a decision by an international arbitration tribunal in 2009 over the Don Muang Tollway.

Walter Bau brought the matter before the US District Court in New York on March 26 last

year, seeking enforcement of the award in the United States. That court ruled in favour of Walter Bau, but the Thai government appealed last Thursday against the decision.

The company also brought the case before a German court in Berlin asking for enforcement of the arbitration tribunal's decision. The case is now under the court's consideration. The Office of the Attorney-General said earlier that it would bring a key witness to the trial to prove the international tribunal mishandled the case, which would extend the proceedings.

Besides the move to secure the release of the royal aircraft, the government has spent its budget for the court battle with Walter Bau in New York and Berlin, Amphon said.

With the Crown Prince's recommendations, the Cabinet agreed to find ways to wind up the conflict with Walter Bau, he said.

To prevent further seizure of any Thai national's assets, the Office of the Attorney-General suggested that the Cabinet deposit a bank guarantee while court action with the company is underway, he said.

The Crown Prince yesterday granted Abhisit a royal audience to receive information on the latest development of the case, he said.

HRH the Crown Prince's statement

Ever since the Berlin court and the German regional court of Landshut issued their verdicts until now, HRH the Crown Prince has never countered the said rulings or domestic and foreign media reports. The Crown Prince, who has had good relations with the German government and the people of Germany and is always given a warm welcome and hospitality during his stays in the country, only showed his respect for the rulings and demonstrated his faith in the justice process.

Although HRH Crown Prince Maha Vajiralongkorn does not have any vested interest nor is involved in any way with the Thai government's dispute with Walter au AG, the conflict has affected his royal activities as well as his royal honour.

Since the Crown Prince is always dedicated to repaying the debt of gratitude he owes to his motherland in his capacities as both the crown prince and a Thai citizen, and since it is always his wish to help foster good relations between the two countries and since it is his intention to see the current conflict resolved amicably and quickly, he is offering his personal assets to be used to settle the case. This shall protect his name from damage from the dispute and from indignity the issue may cause.

Secretariat to HRH Crown Prince Maha Vajiralongkorn

July 31, 2011

-- The Nation 2011-08-02

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Govt to pay bond on impounded royal jet in Germany

The government will pay a 20-million-euro to secure the release of a royal jet that was impounded at a German airport last month, outgoing Foreign Minister Kasit Piromya said.

He made the announcement a day after His Royal Highness Crown Prince Maha Vajiralongkorn had announced plans on Monday to use his private funds to pay the bond for his personal Boeing 737. The plane was impounded at Munich airport on July 11.

"The government will pay the 20-million-euro bond itself, to make clear that the crown prince has no involvement in the case which is between the government and a private company," Kasit said.

-- The Nation 2011-08-02

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Govt says it won't use Crown Prince's assets

By THE NATION

Thailand's government said yesterday that it would not utilise the Crown Prince's assets to secure the release of his Boeing 737 in Germany to settle the contractual dispute with Walter Bau.

The government said it would instead quickly seek other avenues to resolve the dispute and maintain good relations with Berlin while preserving the dignity of the Thai monarchy.

"So far, the Crown Prince has not yet given his personal assets to settle the case but he expressed his intention to do so and the government has informed him that we would do it our own way first," Prime Minister Abhisit Vejjajiva told reporters yesterday.

HRH Crown Prince Maha Vajiralongkorn had offered his personal assets to help the government retrieve his personal plane impounded in Germany. He granted Abhisit a royal audience on Monday to get an update on the current situation.

The prime minister again met yesterday with Attorney-General Julasing Wasantasing to discuss the case and possible means to end the conflict.

The Office of the Attorney-General would send a team to Berlin today for a week to find a solution, he said.

Bangkok is at loggerheads with the German construction company over a demand to pay it ค30 million (Bt1.3 billion) in damages after an international arbitration tribunal in 2009 ruled in favour of the contractor of the Don Muang Tollway.

Walter Bau took its case to the US District Court in New York on March 26 last year, seeking enforcement of the award under the New York Convention. That court also backed Walter Bau, but the Thai government appealed last Thursday against the decision.

The company has also asked a court in Berlin to enforce the arbitration findings.

While the case in the Berlin court is under consideration, the German regional court of Landshut authorised court receivers to seize the Boeing 737, often flown by the Crown Prince, while it was parked at Munich Airport last month.

Walter Bau has been declared insolvent and lawyers have been trying to collect money owed to it.

The Thai government argued that the aircraft belongs to the Crown Prince, not the Thai government. The court agreed to release the plane if the Thai goverment deposited ค20-million (Bt855 million), but the government refused. The impounded jet is still in Germany.

Abhisit said there would be no deposit guarantee to retrieve the jet. The Office of the Attorney-General would concentrate on the main case in Berlin to end the investment conflict and the whole affair quickly without any consequences to the relations with Germany and other parties, he said.

Abhisit said he does not know yet how much this issue would cost to clear up. The government so far has to pay for lawyers' fees.

-- The Nation 2011-08-03

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'Berlin should do what it can to make Thailand pay'

By THE NATION

German media published reports yesterday suggesting that Berlin had to do everything in its power, including freezing foreign assets, to make the Thai government pay compensation to the Walter Bau construction firm over the conflict related to the Don Muang Tollway project.

Spiegel Online reported that the Thai government was thinking about issuing a guarantee to pay the ค30 million (Bt1.27 billion) demanded by the administrator of the now-insolvent German firm Walter Bau, which suffered huge losses because of an alleged breach of contract by the Thai government.

The administrator, Werner Schneider, obtained a court order last month to sequester the Boeing 737 flown by HRH Crown Prince Maha Vajiralongkorn while it was parked at Munich Airport. The case has led to intense diplomatic wrangling and could upset ties between the two countries.

The Thai government initially argued that the jet should be released because it was the Prince's personal property and did not belong to the state. A German court is due to rule in September whether the impounding of the plane was lawful. If it decides that the jet is indeed the Prince's private property, then it will be released.

In the meantime, the courts have set a ค20-million guarantee for its release, but so far the Thai government has refused to pay. The government has also declined an offer by the Crown Prince to use his personal assets to settle the case, promising to use its own methods to settle the case quickly.

The Thai government has been at loggerheads with the German construction firm over the payment of ค30 million in damages after an international arbitration tribunal in 2009 ruled in favour of the contractor.

Walter Bau took its case to the US District Court in New York on March 26 last year, seeking the payment under the New York Convention. The New York court also backed Walter Bau, but the Thai government appealed against the decision last Thursday on July 28. The company has also asked a court in Berlin to enforce the arbitration findings. The court is now considering the case.

Officials from the Thai Office of the Attorney-General are in Germany trying to seek solutions. The German government may end up having to get involved, and may even have to pay the compensation to Walter Bau, according to Spiegel Online.

A recent report by an expert on insolvency law, Professor Christoph Paulus of Berlin's Humboldt University, concluded that the German government should be doing everything in its power to make Thailand pay its debt to the insolvent construction firm. That includes "curtailing trade relations" or the "freezing foreign assets". If the government takes no action, "a compensation claim is feasible", Paulus wrote.

-- The Nation 2011-08-05

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Germans to free jet as govt pays Bt1.6-bn surety

By The Nation

German authorities have agreed to withdraw impoundment of two 737 Boeing jets belonging to His Royal Highness Crown Prince Maha Vajiralongkorn parked at the Munich airport, after Thai government placed 38 million euros as guarantee, former prime minister Abhisit Vejjajiva said yesterday.

The Thai embassy in Germany is working further on the issue to retrieve the two aircraft, and a lawsuit will be soon lodged with German court, said Chawanong Intharakomalsut, secretary to former foreign minister Kasit Piromya. He did not give details over which grounds over the issue the lawsuit would appeal against.

"There are no reasons for the German authorities to take further action over the issue, after the guarantee is placed," he added.

-- The Nation 2011-08-10