There are fears about hundreds of jobs at A&P Tyne, Hebburn, after the company behind the Ice Maiden 1 order went into administration.

Now the former Russian tank carrier is set to be sold, with administrators unable to promise that the conversion work will be taken on by a new owner.

Bosses at A&P Tyne are now looking for fresh orders after C&M Group, the Aberdeen-based owners of the vessel, went into administration following cash-flow problems.

Work on converting the 174m vessel into a 399-person accommodation ship for the oil and gas industry should have kept the Hebburn workforce busy until next March, but now the yard finds itself without a major contract.

Nick Dargan, for administrators Deloitte, said there have been "positive ongoing discussions" about selling the electrical side of C&M Group, which could safeguard jobs in Aberdeen.

But he added: "The Ice Maiden vessel is a much more complex issue and we have instructed shipbrokers, Clarksons, to market the vessel for sale.

"It is too soon to say if the original project to convert the vessel will be carried on by a buyer."

But A&P Tyne managing director David Skentelbery remains optimistic that a new buyer could soon be found.

He said: "This is potentially good news for us, because a new owner would mean the contract would continue."

Mr Skentelbery added there had been "no lay-offs" yet at the Hebburn yard as a result of the contract collapse.