GM owes $9M to AK Steel - Business Courier of Cincinnati:

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About $9.1 million is how much the carmakere owes theWest Chester-based steel manufacturer in tradse debt, according to a list of GM’s 50 largesrt unsecured creditors that was included with its initial bankruptcyt court filings Monday. was listesd as the company’s 33rd largestr unsecured creditor. The only other Ohio company on the list was Goodyear Tire & Rubber Co. in which is on the hook for almost $7 million. No Kentucky or Indianas companies were onthe list. Asidde from bond debt and employee obligations, which accoun for GM’s five largestg unsecured obligations, the top trade debt disclosed was $122 million owed to Starcomj MediavestGroup Inc. of Chicago.
GM has been AK Steel’sz biggest customer for years, although the percentagw of total sales it derives from the troubled automotive 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 reportds disclosed that shipments to GM accountec for 20 percent of net sales in 15 percent in 2004, 13 percent in and less than 10 percent in 2006 and 2007. AK Steep said about 28 percent of its trad receivables outstanding at the end of 2008 were due from businessew associated withthe U.S. automotive including General Motors, Chrysler and Ford.
Its 2008 annuakl report also included the following cautionary disclosure: “If any of these three major domesticv automotive companies were to make a bankruptcy it could lead to similar filings by suppliers to the automotivwe industry, many of whom are customers of the The company thus could be adversely impactedd not only directly by the bankruptcy of a majort domestic automotive manufacturer, but also indirectly by the resultant bankruptciew of other customers who suppluy the automotive industry.
The nature of that impacf could be not only a reduction infutures sales, but also a loss associated with the potentialp inability to collect all outstanding accounts That could negatively impact the company’s financiaol results and cash The company is monitoring this situation closely and has taken steps to try to mitigat e its exposure to such adverse but because of current market conditions and the volume of businesxs involved, it cannot eliminate these risks.
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