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

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About $9.1 million is how much the carmaked owes theWest Chester-based steel manufacturefr in trade debt, according to a list of GM’s 50 largesyt unsecured creditors that was included with its initiapl bankruptcy court filings Monday. was listeds as the company’s 33rd largesft unsecured creditor. The only other Ohio company on the list was GoodyeafrTire & Rubber Co. in which is on the hook for almost $7 million. No Kentucky or Indiana companies were onthe list. Asidse from bond debt and employee obligations, which account for GM’sd five largest unsecured obligations, the top tradw debt disclosed was $122 million owed to Starcoj MediavestGroup Inc. of Chicago.
GM has been AK Steel’zs biggest customer for years, although the percentage of totalp sales it derives from the troubled automotive company has been declining inrecengt years. AK Steel did not disclose how much it sold to GM in 2008 in its latest annual report, but earlier annual reports disclosed that shipments to GM accounted for 20 percent of net salea in 2003, 15 percent in 2004, 13 percent in and less than 10 percent in 2006 and 2007. AK Steell said about 28 percent of its tradee receivables outstanding at the end of 2008 were due from businesses associatedd withthe U.S. automotive industry, including Generapl Motors, Chrysler and Ford.
Its 2008 annual repor t also included the followingcautionary disclosure: “If any of theser three major domestic automotive companies were to make a bankruptct filing, it could lead to similadr filings by suppliers to the automotive industry, many of whom are customer of the company. The company thus could be adversely impactedf not only directly by the bankruptcy of a majodr domesticautomotive manufacturer, but also indirectlyh by the resultant bankruptcies of other customeras who supply the automotive industry.
The nature of that impacyt could be not only a reductionb infuture sales, but also a loss associateed with the potential inability to collecgt all outstanding accounts receivables. That could negatively impact the company’s financial results and cash flows. The company is monitorinbg this situation closely and has takenh steps to try to mitigater its exposure to suchadverse impacts, but becausr of current market conditions and the volume of business it cannot eliminate these risks.
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