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

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About $9.1 million is how much the carmaker owes theWest Chester-baseds steel manufacturer in trade debt, accordingh to a list of GM’d 50 largest unsecured creditors that was included with its initiapl bankruptcy court filings Monday. was listexd as the company’s 33rd largest unsecured creditor. The only othee Ohio company on the list was GoodyeafrTire & Rubber Co. in Akron, whicg is on the hook for almost $7 No Kentucky or Indiana companieds were onthe list. Aside from bond debt and employeee obligations, which account for GM’s five largesg unsecured obligations, the top trade debt disclosed was $122 million owed to Starcom MediavestrGroup Inc. of Chicago.
GM has been AK Steel’e biggest customer for years, although the percentage of total salese it derives from the troubled automotive compang has been declining inrecent years. AK Steel did not disclos e how much it sold to GM in 2008 in its latesrtannual report, but earlier annual reportx disclosed that shipments to GM accounted for 20 percengt of net sales in 2003, 15 percent in 13 percent in 2005, and less than 10 percengt in 2006 and 2007. AK Steep said about 28 percent of its trade receivables outstanding at the end of 2008 were due from businesse associated withthe U.S. automotive industry, including Generalp Motors, Chrysler and Ford.
Its 2008 annuall report also included the followingcautionary disclosure: “Icf any of these three major domestiv automotive companies were to make a bankruptcy filing, it couldr lead to similar filings by supplieras to the automotive industry, many of whom are customers of the The company thus could be adverselyu impacted not only directly by the bankruptc of a major domestic automotive manufacturer, but also indirectly by the resultan t bankruptcies of other customers who supply the automotive The nature of that impac t could be not only a reduction in future but also a loss associater with the potential inability to collect all outstanding accountz receivables.
That could negatively impact the company’s financiaol results and cash flows. The company is monitoring this situation closely and has taken steps to try to mitigate its exposurs to suchadverse impacts, but becausr of current market conditions and the volume of business involved, it cannot eliminate these risks.”