Thailand seeks to lift impounding of prince's jet

A Boeing 737 used by the Thai crown is pictured at Munich airport July 13, 2011, after it was impounded by insolvency administrators in Germany seeking payment of an old debt owed by the Thai government to a collapsed German firm.

BANGKOK (Reuters) - Thailand's foreign minister said on Thursday he would fly to Germany to try to convince authorities to reverse a court-authorised impounding of a Boeing 737 (BA.N) 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 who impounded the jet in a financial dispute between Thailand and an insolvent German construction firm.

"We would like to clarify that this case has no connection whatsoever 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," Kasit told a news conference.

"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."

Kasit said he would fly to Berlin on Friday and a spokesman for the ministry in Berlin said the delegation was expected for talks at the foreign office on Friday evening.

As German Foreign Minister Guido Westerwelle is in South America, the delegation will be met by Minister of State Cornelia Pieper.

German insolvency administrators impounded the plane on Wednesday in a move to seek 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, formerly Bangkok's main international airport.

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

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

A spokeswoman for the administrator said on Thursday the situation had not changed and they were still waiting for money to be transferred. (Reporting by Vithoon Amorn and Victoria Bryan and Jens Hack in Germany; Editing by Alan Raybould, Sanjeev Miglani and Sophie Hares)