Helphire has confirmed a balance sheet shortfall of £27m after a KPMG investigation.
The accident management company has also made a fresh £14m writedown on its credit repairs business, according to the Telegraph.
Helphire said the accounting error happened when the firm overstated how much it was owed by insurers.
Helphire revealed in its interim management statement covering 1 January to 20 April that, following the completion of its restructuring, it had become aware that there may be a “material overvaluation” in the carrying value of ABI debtors in its financial systems when compared with its operating systems.
It said preliminary findings showed a £25m overstatement, representing 15% of the group’s receivables at 31 December 2010.
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