THE fate of hundreds of North-East asbestos claim-ants remains in the balance despite progress to unlock millions of pounds of frozen compensation.

Talks took place yesterday between claimants' solicitors and the administrators of the UK's largest asbestos manufacturer, Turner and Newall (T&N).

The company's US parent went into administration last October, which led to millions of pounds worth of claims for asbestos-related diseases being frozen.

It emerged last night that, following a meeting in London, victims of asbestos will be recognised as creditors.

But legal wranglings over the firm's insurance cover could still see compensation payouts take many years.

Adrian Budgen, of law firm Irwin Mitchell, which acts for many of the claimants, said: "The administrators have asked for more time, but unfortunately our claimants don't have more time to give."

The meeting was also attended by representatives from Newcastle solicitors Thompsons.

Terrie Pridie, of the firm, said they estimated that there were £70m worth of outstanding claims against T&N.

She said that in some cases cheques were stopped after the company went into administration.

T&N's legacy in the North-East included the Washington Chemical Works, near Sunderland, which continued asbestos production into the early 1970s.

Scores of subsidiaries also operated in the region, with asbestos a major component of the shipbuilding and chemical industries.

Paul Nowak, TUC Northern regional secretary, said: "It is absolutely vital this gets sorted out as you are talking about thousands of people's livelihoods."

Meanwhile Labour MP John Battle, who is representing asbestos victims in his Leeds West constituency, said the Government should provide a loan to those affected while they wait to find out if they will receive compensation.