Berlin - Struggling German model railway maker Maerklin filed for insolvency on Wednesday after failing to obtain a credit extension from banks, the company said.

Managing director Dietmar Mundil said the company would continue to operate normally while insolvency proceedings continued.

"We are determined to reorganize our long-established company in cooperation with the temporary insolvency administrator and to establish it as a market force on a permanent basis," Mundil said.

He said the company had been forced to file for insolvency after failing to obtain an extension of a 50-million euro (65 million dollars) credit line from two banks.

Maerklin, which was founded as a toymaker in 1859, is today best known for its model railways and technical toys.

Turnover in 2008 was 128 million euros, slightly more than the 126 million euros recorded a year before.

The company said it made an operating loss last year, but did not divulge any figures. (dpa)