Alpha Accident Management has had its shares suspended after developing cashflow problems as a result of the House of Lords further delaying its decision in the landmark Dimond v Lovell credit hire case for another six weeks.

The stock market suspended trading in the company, which has 55 staff and is listed on the Alternative Investment Market, on April 7.

Alpha Accident, which provides accident management services including credit hire to non-fault motorists, said the additional delay would "exacerbate" its already serious cash flow problems.

A statement from the company said it had requested the suspension of its shares while it went seeking alternative sources of funding. Alpha Accident's turnover in 1998 was £5.8m.

The company said: "The directors believe the House of Lords' latest decision can only result in a further requirement for working capital, which cannot be found from within the company."

The House of Lords was due to hand down its judgement in the Dimond v Lovell case at the end of April, but experts believe it may be May.

Up to 50,000 credit hire cases have been effectively frozen in the courts while judgement is decided.