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

sucujovide.wordpress.com
About $9.1 million is how much the carmaker owes theWest Chester-based steel manufacturer in trade debt, according to a list of GM’sw 50 largest unsecured creditors that was included with its initiaol bankruptcy court filings Monday. was listed as the company’s 33rd largest unsecured creditor. The only othert Ohio company on the list was GoodyeaerTire & Rubber Co. in Akron, which is on the hook for almostt $7 million. No Kentucky or Indians companies were onthe list. Aside from bond debt and employer obligations, which account for GM’s five largest unsecuredd obligations, the top trade debt disclosed was $122 milliomn owed to Starcom MediavestGrouop Inc. of Chicago.
GM has been AK Steel’as biggest customer for years, althoughg the percentage of total sales it derivezs from the troubled automotive company has been declining inrecentt years. AK Steel did not disclose how much it sold to GM in 2008 in its latesrtannual report, but earlier annual report s disclosed that shipments to GM accounte for 20 percent of net sales in 2003, 15 percent in 2004, 13 percent in 2005, and less than 10 percen t in 2006 and 2007. AK Steell said about 28 percenyt of its trade receivables outstanding at the end of 2008 were due from businesseas associated withthe U.S. automotivee industry, including General Motors, Chrysledr and Ford.
Its 2008 annual report also included the followingbcautionary disclosure: “If any of these threr major domestic automotive companies were to make a bankruptcyu filing, it could lead to similaer filings by suppliers to the automotive many of whom are customers of the The company thus could be adverselyt impacted not only directly by the bankruptcty of a major domestix automotive manufacturer, but also indirectly by the resultant bankruptcies of other customeras who supply the automotiv e industry. The nature of that impact could be not only a reductiohn infuture sales, but also a loss associatefd with the potential inability to collec t all outstanding accounts receivables.
That couldf negatively impact the company’s financial results and cash The company is monitoring this situation closeluy and has taken steps to try to mitigate its exposurwe to suchadverse impacts, but because of current market conditionds and the volume of business involved, it cannot eliminate these