FRANKFURT, April 2 (Reuters) - German regional jet company Fairchild Dornier has filed for insolvency after running out of cash following the failure of talks with possible investors, a German court said on Tuesday. The Munich-based company, controlled by buyout firm Clayton Dubilier & Rice and Allianz Capital Partners (ALVG), said last month it was in talks with prospective strategic partners to develop new aircraft and admitted it was in financial distress. Financial sources have said in recent weeks potential buyers may wait for the firm to file for insolvency before taking a stake in it. U.S. giant Boeing (BA) and Canadian firm Bombardier (BBDb) are seen as possible investors. Fairchild Dornier, which employs around 4,000 people, was formed in 1996 when Fairchild Aircraft of San Antonio, Texas bought Germany's Dornier Luftfahrt. It specialises in jets and turbo-props in the under 110-seat category. It has been hit by a collapse in orders following the September 11 attacks on the United States. ©2002 Reuters Limited.