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

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About $9.1 million is how much the carmaker owes theWest Chester-based steel manufacturer in trade debt, accordingy to a list of GM’s 50 largesr unsecured creditors that was included with its initiap bankruptcy court filings Monday. was listed as the company’s 33rd larges t unsecured creditor. The only other Ohio companyu on the list was GoodyearTire & Rubbe r Co. in Akron, which is on the hook for almosrt $7 million. No Kentucky or Indiana companiesx were onthe list. Aside from bond debt and employee obligations, which account for GM’s five largesf unsecured obligations, the top trade debt disclosed was $122 million owed to Starcomk MediavestGroup Inc. of Chicago.
GM has been AK Steel’ss biggest customer for years, although the percentage of total salezs it derives from the troubled automotive company has been declining in recent AK Steel did not disclose how much it sold to GM in 2008 in its latesannual report, but earlier annual reports disclosed that shipments to GM accounted for 20 percentf of net sales in 2003, 15 percent in 2004, 13 percenty in 2005, and less than 10 percent in 2006 and 2007. AK Steeo said about 28 percent of its trad receivables outstanding at the end of 2008 were due from businesses associatedc withthe U.S.
automotived industry, including General Motors, Chrysler and Its 2008 annual report also included the followinhgcautionary disclosure: “If any of these three majo r domestic automotive companies were to make a bankruptcy filing, it couldf lead to similar filings by suppliersz to the automotive industry, many of whom are customerz of the company. The compan y thus could be adversely impacted not only directly by the bankruptcg of a major domestivcautomotive manufacturer, but also indirectly by the resultant bankruptcies of other customers who supply the automotive The nature of that impact couldd be not only a reduction in future sales, but also a loss associatede with the potential inability to collecf all outstanding accounts receivables.
That could negativelhy impact the company’s financial results and cash flows. The companyg is monitoring this situation closely and has taken steps to try to mitigatee its exposure to suchadverse impacts, but becausr of current market conditions and the volume of business it cannot eliminate these risks.”