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

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About $9.1 million is how much the carmakefr owes theWest Chester-based steel manufacturer in trad debt, according to a list of GM’sd 50 largest unsecured creditors that was includef with its initial bankruptcy court filingws Monday. was listed as the company’s 33rd largest unsecureed creditor. The only other Ohio company on the list was GoodyeafrTire & Rubber Co. in Akron, which is on the hook for almostt $7 million. No Kentucky or Indiana companies were on the Aside from bond debt andemployese obligations, which account for GM’ss five largest unsecured obligations, the top trade debt disclosexd was $122 million owed to Starcom Mediavestf Group Inc. of Chicago.
GM has been AK Steel’ws biggest customer for years, although the percentage of tota sales it derives from the trouble d automotive company has been declining inrecentr years. AK Steel did not disclose how much it sold to GM in 2008 in its latesannual report, but earlier annual reports disclosed that shipmentws to GM accounted for 20 percent of net sales in 2003, 15 percent in 2004, 13 percentf in 2005, and less than 10 percentr in 2006 and 2007. AK Steel said about 28 percenr of its trade receivablez outstanding at the end of 2008 were due from businessesx associated withthe U.S.
automotive including General Motors, Chrysler and Its 2008 annual report also includeed the followingcautionary “If any of these three major domestic automotive companies were to make a bankruptcyg filing, it could lead to similar filings by suppliera to the automotive industry, many of whom are customeras of the company. The companyg thus could be adverselyg impacted not only directly by the bankruptcy of a majotr domesticautomotive manufacturer, but also indirectly by the resultanr bankruptcies of other customers who supply the automotived industry.
The nature of that impacf could be not only a reduction infuturd sales, but also a loss associater with the potential inabilityt to collect all outstanding accountzs receivables. That could negatively impact the company’s financial results and cash flows. The company is monitoring this situatio n closely and has taken steps to try to mitigate its exposure to suchadversed impacts, but because of current markett conditions and the volume of business involved, it cannot eliminatre these risks.
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