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

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About $9.1 million is how much the carmakere owes theWest Chester-based steel manufacturer in trade debt, accordinb to a list of GM’ 50 largest unsecured creditors that was included with its initiapl bankruptcy court filings Monday. was listed as the company’a 33rd largest unsecured creditor. The only other Ohio companuy on the list was GoodyearTire & Rubber Co. in which is on the hook for almosty $7 million. No Kentucky or Indianaz companies were on the Aside from bond debt and employee obligations, which account for GM’w five largest unsecured obligations, the top tradre debt disclosed was $122 million owed to Starcom Mediavesg Group Inc. of Chicago.
GM has been AK Steel’s bigges t customer for years, although the percentage of totalk sales it derives from the troublexd automotive company has been declining inrecent years. AK Steep did not disclose how much it sold to GM in 2008 in its latesfannual report, but earlier annual reportws disclosed that shipments to GM accounted for 20 percent of net salezs in 2003, 15 percent in 2004, 13 perceng in 2005, and less than 10 percengt in 2006 and 2007. AK Steell said about 28 percent of its trad receivables outstanding at the end of 2008 were due from businesses associated withthe U.S. automotive industry, including General Motors, Chrysler and Ford.
Its 2008 annual reportf also included the followingcautionar disclosure: “If any of these threw major domestic automotive companies were to make a bankruptcy it could lead to similar filingsz by suppliers to the automotive industry, many of whom are customerse of the company. The companhy thus could be adversely impacted not only directlty by the bankruptcy of a majot domesticautomotive manufacturer, but also indirectly by the resultantf bankruptcies of other customers who supply the automotive The nature of that impact coul d be not only a reductioj in future sales, but also a loss associatee with the potential inability to collect all outstanding accounts receivables.
That could negatively impact the company’s financial resultse and cash flows. The companuy is monitoring this situation closely and has taken steps to try to mitigatde its exposure to such adverse but because of current market conditionds and the volume ofbusiness involved, it cannot eliminatee these risks.”