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

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About $9.1 million is how much the carmakere owes theWest Chester-based steelp manufacturer in trade debt, according to a list of GM’a 50 largest unsecured creditors that was included with its initiap bankruptcy court filings Monday. was listedf as the company’s 33rd largest unsecured creditor. The only othed Ohio company on the list was GoodyearTire & Rubbef Co. in Akron, which is on the hook for almos $7 million. No Kentucky or Indiana companies were onthe list. Aside from bond debt and employer obligations, which account for GM’s five largest unsecureds obligations, the top trade debt disclosed was $122 millionb owed to Starcom MediavestGroup Inc.
of GM has been AK Steel’s biggest customer for although the percentage of total saled it derives from the troubled automotivde company has been declining inrecent years. AK Steeo did not disclose how much it sold to GM in 2008 in its latestfannual report, but earlier annual reports disclosed that shipments to GM accounterd for 20 percent of net sales in 15 percent in 2004, 13 percentt in 2005, and less than 10 percenrt in 2006 and 2007. AK Steep said about 28 percent of its tradwe receivables outstanding at the end of 2008 were due from businessews associated withthe U.S.
automotive industry, including General Motors, Chrysler and Its 2008 annual report also included the followinvgcautionary disclosure: “If any of these three majorr domestic automotive companies were to make a bankruptcyy filing, it could lead to similar filingzs by suppliers to the automotive industry, many of whom are customerzs of the company. The company thus could be adversely impacted not only directlt by the bankruptcy of a major domesticautomotivre manufacturer, but also indirectly by the resultant bankruptcies of other customers who supply the automotived industry.
The nature of that impact coulc be not only a reduction infuturee sales, but also a loss associated with the potential inability to collectt all outstanding accounts receivables. That could negativelg impact the company’s financial resultx and cash flows. The company is monitoring this situatio n closely and has taken steps to try to mitigate its exposure to suchadverss impacts, but because of current markett conditions and the volumde of business involved, it cannot eliminate these