SolarWorld AG has filed for insolvency

German solar panel maker SolarWorld AG has filed for insolvency, citing the effect of falling prices in the industry.

The company said that after conducting a diligent review its management has concluded that due to the ongoing price erosion and the development of the business, the company no longer has a positive going concern prognosis.

It further added that the firm is over-indebted and therefore obliged to launch insolvency proceedings. The company filed for insolvency on Thursday at a court near its headquarter in Bonn.

Solar panel makers in Europe have long struggled with tough competition from manufacturers in China in particular.