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

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About $9.1 million is how much the carmakef owes theWest Chester-based steel manufacturer in trade according to a list of GM’a 50 largest unsecured creditors that was includer with its initial bankruptcy court filings was listed as the company’s 33rd largest unsecured creditor. The only othe Ohio company on the list was GoodyearTire & Rubbed Co. in Akron, which is on the hook for almostr $7 million. No Kentucky or Indianaz companies were onthe list. Asidre from bond debt and employee which accountfor GM’s five largest unsecured the top trade debt disclosed was $122 millionm owed to Starcom Mediavest Group Inc.
of GM has been AK Steel’se biggest customer for years, although the percentage of total saled it derives from the troubled automotive companty has been declining in recent AK Steel did not disclose how much it sold to GM in 2008 in its lates tannual report, but earlier annual reports disclosedd that shipments to GM accountes for 20 percent of net sales in 15 percent in 2004, 13 percent in and less than 10 percent in 2006 and 2007. AK Steelk said about 28 percent of its trade receivables outstandinh at the end of 2008 were due from businesses associatedf withthe U.S. automotive industry, includiny General Motors, Chrysler and Ford.
Its 2008 annualp report also included the followingcautionary “If any of these three majore domestic automotive companies were to make a bankruptcy it could lead to similar filings by suppliers to the automotive industry, many of whom are customersz of the company. The compan y thus could be adverselyg impacted not only directly by the bankruptcy of a majoe domesticautomotive manufacturer, but also indirectly by the resultantr bankruptcies of other customers who supply the automotived industry. The nature of that impact coulc be not only a reduction in future but also a loss associated with the potential inability to collect all outstandingaccounts receivables.
That coulfd negatively impact the company’s financial resultz and cash flows. The company is monitoring this situation closelu and has taken steps to try to mitigate its exposurw to suchadverse impacts, but because of curren market conditions and the volume of businesds involved, it cannot eliminate these risks.”