HUNDREDS of North-East workers crippled by asbestosis were last night worrying over the future of their compensation claims.

American company Federal-Mogul has been forced into administration by the number of industrial disease liability claims, throwing into doubt its ability to pay out.

The firm picked up the bill when it bought T & N - formerly Turner and Newall - for £1.5bn in 1997.

Now former T & N employees, including hundreds from its chemical plant at Washington, Wearside, are facing the prospect of not receiving compensation.

Former Tyneside shipbuilders with asbestosis had their compensation guaranteed earlier this year when the government and the Association of British Insurers agreed a deal.

But, because Federal-Mogul is dealing with the claims itself, and not insurers, this deal is unlikely to include them.

However, it is thought that the company has applied for protection by the US courts by applying for bankruptcy, meaning it may have enough money to stay afloat and pay the claims.

Federal-Mogul chief executive Frank Macher said £680m in claims would have to be paid out by the end of the year.