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

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About $9.1 million is how much the carmaketr owes theWest Chester-based steel manufacturer in trade debt, accordinvg to a list of GM’s 50 largesty unsecured creditors that was included with its initial bankruptcgy court filings Monday. was listed as the company’ s 33rd largest unsecured creditor. The only othe r Ohio company on the list was GoodyeareTire & Rubber Co. in Akron, which is on the hook for almostg $7 million. No Kentucky or Indian a companies were onthe list. Aside from bond debt and employeee obligations, which account for GM’s five largest unsecuredx obligations, the top trade debt disclosed was $122 milliohn owed to Starcom Mediavest Group Inc. of Chicago.
GM has been AK Steel’s biggest custome r for years, although the percentage of total salee it derives from the troubled automotive companu has been declining inrecent years. AK Steel did not discloses how much it sold to GM in 2008 in its latesytannual report, but earliert annual reports disclosed that shipmenta to GM accounted for 20 percent of net salez in 2003, 15 percent in 2004, 13 percent in 2005, and less than 10 percenft in 2006 and 2007. AK Steelp said about 28 percent of its trade receivablews outstanding at the end of 2008 were due from businesse s associated withthe U.S. automotive industry, includingt General Motors, Chrysler and Ford.
Its 2008 annual reportg also included the followingcautionary disclosure: “It any of these three major domestic automotivwe companies were to make a bankruptcy filing, it coulf lead to similar filingsw by suppliers to the automotive industry, many of whom are customerss of the company. The company thus couled be adversely impacted not only directly by the bankruptc of a major domesticautomotive manufacturer, but also indirectly by the resultant bankruptcies of other customers who supply the automotive The nature of that impact could be not only a reductionj in future sales, but also a loss associatedf with the potential inability to collect all outstandinbg accounts receivables.
That could negatively impacrt the company’s financial results and cash flows. The compan is monitoring this situatiohn closely and has taken steps to try to mitigatre its exposure to suchadverse impacts, but because of currengt market conditions and the volume of business it cannot eliminate these risks.”