The UK accident repair industry continues to absorb the fall-out from the failure of Credit Hire Company Drive Assist. Not only has it created huge logistical problems for bodyshops offering replacement vehicles, but it has also emerged that many repairers themselves stand to lose in some cases hundreds of thousands of pounds in unpaid for repairs.

Zolfo Cooper, the administrators of Drive Assist have now contacted all creditors, but it appears that due to the perilous state of the company finances they expect to receive only a tiny fraction of what they are owed if anything at all.  The company’s first statement of affairs issued since it entered administration on 10 December 2012 reveal that Dive Assist’s debts exceed its available assets by £42.7m.

It is believed that insurance companies, Swinton, Esure and Aviva will be the worst hit with possible losses running in to millions. However many repairers also feature on the long list of creditors. Some of the larger repair chains are believed to be owed sums running in to six figures, while even some smaller repairers, including ones in Northern Ireland are owed tens of thousands.

All this may have a serious knock-on effect on motor factors and paint and parts suppliers across an industry already facing serious cash flow issues.