Under the order, T&N, which was once Britain's largest manufacture of asbestos, can trade as normal. Administrators have three months to address financial problems, complete a report and call a meeting of creditors — but all claims are frozen.
T&N says it decided to call in the administrators because it needs the protection of administration to give it time to address financial problems, which are the result of multimillion-pound claims.
Many claimants are unlikely to receive compensation, which varies from a few thousand pounds to more than a quarter of a million depending on the type of disease they have developed.
Adrian Budgen, a partner at law firm Irwin Mitchell, said one of his clients had won against the firm, but was now unable to cash the settlement cheque.
'The future is pretty grim,' he said. 'It's a bitter blow for anyone suffering from an asbestos-related illness.
'They (T&N) have known for a long time that asbestos was dangerous,' he added.
He said around 400 claims were pending, but said there would certainly be more people wanting to claim in the future, but they may not be able to. The situation could take years to sort out, he said.
'There is a lot of uncertainty. We have asked a lot of questions, but not got a lot of answers.'
Budgen said the administration order was filed the same day as T&N's US parent company Federal Mogul filed for bankruptcy and he believed Federal Mogul's collapse contributed to T&N's financial problems.
Irwin Mitchell has obtained the highest damages award for a mesothelioma suffered (£1.15m) and the highest damages award for someone suffering from asbestosis (£750,000).
It is estimated that asbestos affects up to one in 100 British men over 40.
Source
The Facilities Business