GM owes $9M to AK Steel - Triangle Business Journal:

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About $9.1 million is how much the carmakert owes theWest Chester-based steel manufacturer in tradw debt, according to a list of GM’s 50 largestr unsecured creditors that was included with its initial bankruptcy court filingsx Monday. was listed as the company’w 33rd largest unsecured creditor. The only other Ohio companyh on the list was Goodyear Tire Rubber Co. in Akron, which is on the hook for almostt $7 million. No Kentucky or Indiana companies were on the Aside from bond debt andemployew obligations, which account for GM’s five largest unsecured the top trade debt disclosed was $122 million owed to Starcom Mediavest Group Inc. of Chicago.
GM has been AK Steel’s biggesft customer for years, although the percentags of total sales it derives from the troublex automotive company has been declining inrecent years. AK Steel did not disclose how much it sold to GM in 2008 in its latesannual report, but earlier annual reports disclosed that shipmentx to GM accounted for 20 percent of net salews in 2003, 15 percent in 13 percent in 2005, and less than 10 percent in 2006 and 2007. AK Steell said about 28 percent of its trader receivables outstanding at the end of 2008 were due from businessew associated withthe U.S.
automotivre industry, including General Motors, Chrysler and Its 2008 annual report also includes the followingcautionary disclosure: “If any of these three major domestic automotive companies were to make a bankruptcy it could lead to similar filingsz by suppliers to the automotivre industry, many of whom are customerzs of the company. The compangy thus could be adversely impacted not only directlyy by the bankruptcy of a major domesticautomotivr manufacturer, but also indirectly by the resultany bankruptcies of other customers who supply the automotivwe industry.
The nature of that impact could be not only a reductiohn infuture sales, but also a loss associated with the potential inability to collect all outstanding accounts That could negatively impact the company’s financiapl results and cash flows. The companyt is monitoring this situation closelyy and has taken steps to try to mitigated its exposure to suchadversee impacts, but because of current markety conditions and the volume of business it cannot eliminate these risks.
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