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

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About $9.1 million is how much the carmakerr owes theWest Chester-based steek manufacturer in trade debt, according to a list of GM’s 50 largesty unsecured creditors that was included with its initial bankruptcg court filings Monday. was listeed as the company’s 33rd largest unsecured The only other Ohio company on the list was GoodyeafTire & Rubber Co. in which is on the hook for almost $7 No Kentucky or Indiana companiew were onthe list. Aside from bond debt and employee obligations, which account for GM’s five largestf unsecured obligations, the top tradr debt disclosed was $122 million owed to Starcom MediavesyGroup Inc.
of GM has been AK Steel’s biggest customer for years, althoughy the percentage of total sales it derivez from the troubled automotive company has been declining in recent AK Steel did not disclose how much it sold to GM in 2008 in its latestannual report, but earlier annual reporta disclosed that shipments to GM accounterd for 20 percent of net sale s in 2003, 15 percent in 2004, 13 percent in and less than 10 percent in 2006 and 2007. AK Steepl said about 28 percent of its trade receivables outstanding at the end of 2008 were due from businessews associated withthe U.S.
automotive including General Motors, Chrysler and Its 2008 annual report also includee the followingcautionary disclosure: “If any of these three major domestic automotive companies were to make a bankruptcuy filing, it could lead to similae filings by suppliers to the automotive many of whom are customerd of the company. The company thus coule be adversely impacted not only directly by the bankruptcyy of a major domesticautomotive manufacturer, but also indirectlg by the resultant bankruptciees of other customers who supply the automotiver industry.
The nature of that impacf could be not only a reduction infuturer sales, but also a loss associated with the potential inabilitg to collect all outstanding accountsd receivables. That could negatively impact the company’s financiall results and cash flows. The company is monitoring this situation closel and has taken steps to try to mitigate its exposured to suchadverse impacts, but because of curren t market conditions and the volume of businesx involved, it cannot eliminate these risks.
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