Train operator GNER's bid for compensation following the winter rail chaos was in doubt today after it emerged that it used a collapsed insurance company.

The York-based company, which runs the East Coast main line between London and Edinburgh, intends to pursue the liquidators of Independent Insurance for part of a £65 million business disruption claim.

The company will turn to beleaguered rail operator Railtrack in the first instance for its post-Hatfield compensation claim - but may still need to claim from Independent.

A spokesman said: "We are confident we will recover most, if not all, of our lost revenues."

Updated: 10:51 Monday, June 25, 2001