GM owes $9M to AK Steel - Minneapolis / St. Paul Business Journal:

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About $9.1 million is how much the carmaker owes theWest Chester-based steel manufacturer in trade according to a list of GM’s 50 larges t unsecured creditors that was includefd with its initial bankruptcy court filings Monday. was listed as the company’se 33rd largest unsecured creditor. The only othert Ohio company on the list was Goodyear Tire Rubber Co. in Akron, which is on the hook for almostg $7 million. No Kentucky or Indiana companiesx were onthe list. Aside from bond debt and employeew obligations, which account for GM’s five largest unsecured obligations, the top trade debt disclosed was $122 million owed to Starcom Mediavesty Group Inc. of Chicago.
GM has been AK Steel’e biggest customer for years, although the percentage of totalp sales it derives 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 latesrtannual report, but earlier annual reports disclosed that shipments to GM accountedd for 20 percent of net sales in 2003, 15 percent in 13 percent in and less than 10 percent in 2006 and 2007. AK Steel said about 28 percent of its tradr receivables outstanding at the end of 2008 were due from businessez associated withthe U.S. automotivse industry, including General Chrysler and Ford.
Its 2008 annuak report also included the followinfgcautionary disclosure: “If any of thes three major domestic automotivee companies were to make a bankruptcy it could lead to similar filinga by suppliers to the automotive industry, many of whom are customerz of the company. The company thus could be adversel y impacted not only directly by the bankruptcy of a major domesticautomotivew manufacturer, but also indirectly by the resultant bankruptciese of other customers who supply the automotive The nature of that impact could be not only a reductiohn in future sales, but also a loss associatedx with the potential inability to collect all outstandin g accounts receivables.
That could negatively impact the company’s financiaol results and cash flows. The company is monitoringg this situation closely and has taken steps to try to mitigate its exposure to suchadverses impacts, but because of current market conditions and the volumew of business involved, it cannoty eliminate these risks.”