FRANKFURT - An impounded Boeing 737 jet belonging to the crown prince of Thailand will be returned to him after the Thai government agreed to pay a bond for its release, German lawyers said on Wednesday.

Following the payment of the bond, a German insolvency lawyer also reached an agreement with the new Thai government over the payment of a debt that stretches back 20 years.

Insolvency lawyer Werner Schneider impounded the plane last month to force a resolution of the row, which dates back to when German firm Dywidag helped build a 26 km(15 mile) toll road to Don Muang airport, formerly Bangkok's main international airport.

In a statement, the Schneider, Geiwitz & Partner law firm confirmed that the plane belonging to Crown Prince Vajiralongkorn was no longer impounded and that the official bailiff's stamp had been removed on Tuesday afternoon.

The Thai foreign ministry said on Tuesday it had provided a bank guarantee letter for 38 million euros ($53.5 million) but it was not immediately clear whether the court had accepted the bond.  

Schneider and the Thai government held talks on Tuesday afternoon and came to a deal that would resolve the dispute, the lawyer's office said.

The agreement needs to be approved by the new Thai government and Walter Bau, the German company that merged with Dywidag merged in 2001 and later became insolvent.

Schneider said he was very satisfied with the outcome: "Our tenacity has paid off."  

($1=.7099 Euro)