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

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About $9.1 million is how much the carmakerd owes theWest Chester-based stee l manufacturer in trade debt, accordinvg to a list of GM’s 50 largest unsecured creditorsa that was included with its initiapl bankruptcy court filings Monday. was listed as the company’sx 33rd largest unsecured creditor. The only othe Ohio company on the list was Goodyear Tire Rubber Co. in Akron, which is on the hook for almostg $7 million. No Kentucky or Indiana companieas were onthe list. Aside from bond debt and employeer obligations, which account for GM’s five largest unsecured the top trade debt disclosedwas $122 million owed to Starcom Mediavest Group Inc. of Chicago.
GM has been AK Steel’e biggest customer for years, although the percentage of totalp sales it derives from the troubleds automotive company has been declining in recent AK Steel did not discloses how much it sold to GM in 2008 in its latesfannual report, but earlier annual reportsd disclosed that shipments to GM accountec for 20 percent of net sales in 2003, 15 percentf in 2004, 13 percent in 2005, and less than 10 percent in 2006 and 2007. AK Steek said about 28 percent of its trads receivables outstanding at the end of 2008 were due from businesses associated withthe U.S.
automotivew industry, including General Motors, Chrysler and Its 2008 annual report also included the followingtcautionary disclosure: “If any of these three majo domestic automotive companies were to make a bankruptch filing, it could lead to similarr filings by suppliers to the automotive industry, many of whom are customer of the company. The company thus could be adversely impacted not only directly by the bankruptcy of a majot domesticautomotive manufacturer, but also indirectluy by the resultant bankruptcies of other customera who supply the automotive industry.
The nature of that impact couldc be not only a reduction in future but also a loss associate with the potential inability to collect all outstanding accounts That could negatively impactthe company’s financiaol results and cash flows. The company is monitorin g this situation closely and has taken steps to try to mitigat e its exposure to suchadverse impacts, but becausew of current market conditions and the volumr of business involved, it cannot eliminatde these risks.
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