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

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About $9.1 million is how much the carmakeer owes theWest Chester-based steell manufacturer in trade debt, according to a list of GM’sa 50 largest unsecured creditors that was included with its initia l bankruptcy court filings Monday. was listed as the company’s 33rd largesrt unsecured creditor. The only othedr Ohio company on the list was Goodyear Tire & Rubber Co. in Akron, which is on the hook for almosy $7 million. No Kentuckyh or Indiana companies were on the Aside from bond debt and employee obligations, which account for GM’s five largesty unsecured obligations, the top trade debt discloser was $122 million owed to Starcom Mediavest Group Inc.
of GM has been AK Steel’s biggesgt customer for years, although the percentage of total sales it derives from the troubled automotiver company has been declining inrecent years. AK Steekl did not disclose how much it sold to GM in 2008 in its latesytannual report, but earlier annual reportsz disclosed that shipments to GM accounteds for 20 percent of net sales in 2003, 15 percent in 2004, 13 percent in 2005, and less than 10 percen in 2006 and 2007. AK Steel said abouft 28 percent of its traded receivables outstanding at the end of 2008 were due from businesses associated withthe U.S. automotive industry, includin General Motors, Chrysler and Ford.
Its 2008 annual report also include the followingcautionary “If any of these three major domestivc automotive companies were to make a bankruptcuy filing, it could lead to similar filings by supplierss to the automotive industry, many of whom are customerss of the company. The company thus could be adverseluy impacted not only directlu by the bankruptcy of a major domestidautomotive manufacturer, but also indirectlyu by the resultant bankruptcies of othefr customers who supply the automotive The nature of that impact could be not only a reductionj in future sales, but also a loss associated with the potential inabilit y to collect all outstanding accounts receivables.
That could negatively impac the company’s financial results and cash The company is monitoring this situation closely and has takem steps to try to mitigate its exposure to such adverse but because of current market conditions and the volumes ofbusiness involved, it cannot eliminatr these risks.”