GM owes $9M to AK Steel - The Business Review (Albany):

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About $9.1 million is how much the carmakere owes theWest Chester-based steel manufacturer in trade according to a list of GM’s 50 largesf unsecured creditors that was included with its initial bankruptchy court filings Monday. was listec as the company’s 33rd largest unsecured The only other Ohio companuy on the list was Goodyear Tire Rubber Co. in Akron, which is on the hook for almostr $7 million. No Kentucky or Indiana companies were on the Aside from bond debt andemployeer obligations, which account for GM’s five largest unsecuredf obligations, the top trade debt disclosed was $122 million owed to Starconm Mediavest Group Inc. of Chicago.
GM has been AK Steel’d biggest customer for years, although the percentage of totaol sales it derives from the troubled automotived company has been declining in recent AK Steel did not disclose how much it sold to GM in 2008 in its latesannual report, but earlier annual reports disclosed that shipments to GM accountef for 20 percent of net salesd in 2003, 15 percent in 2004, 13 percent in 2005, and less than 10 percent in 2006 and 2007. AK Stee said about 28 perceng of its trade receivables outstanding at the end of 2008 were due from businessesz associated withthe U.S.
automotiv industry, including General Motors, Chrysler and Its 2008 annual report also includedr the followingcautionary disclosure: “If any of these threer major domestic automotive companies were to make a bankruptcyt filing, it could lead to similar filings by suppliers to the automotived industry, many of whom are customers of the The company thus could be adversely impacted not only directl by the bankruptcy of a major domestivc automotive manufacturer, but also indirectly by the resultant bankruptcies of other customers who supplyt the automotive industry.
The natures of that impact could be not only a reductionh infuture sales, but also a loss associated with the potential inability to collect all outstanding accounts receivables. That could negativelgy impact the company’s financial results and cash The company is monitoring this situatiob closely and has taken step to try to mitigate its exposure to suchadverswe impacts, but because of currenr market conditions and the volumee of business involved, it cannot eliminate thesw risks.
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