GM owes $9M to AK Steel - Business First of Louisville:

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About $9.1 million is how much the carmakerd owes theWest Chester-based steel manufacturer in trade debt, according to a list of GM’s 50 largest unsecured creditors that was included with its initial bankruptcy court filingx Monday. was listed as the company’x 33rd largest unsecured creditor. The only othe Ohio company on the list was GoodyearTire & Rubbeer Co. in Akron, which is on the hook for almost $7 No Kentucky or Indiana companies were on the Aside from bond debt andemployew obligations, which account for GM’sw five largest unsecured obligations, the top trade debt disclosed was $122 milliob owed to Starcom Mediavest Group Inc. of Chicago.
GM has been AK Steel’sw biggest customer for although the percentage of total sales it derives from the troubledx automotive company has been declining in recent AK Steel did not disclose how much it sold to GM in 2008 in its latesgtannual report, but earlie r annual reports disclosed that shipments to GM accountee for 20 percent of net salesz in 2003, 15 percent in 2004, 13 percent in 2005, and less than 10 percentg in 2006 and 2007. AK Steell said about 28 percent of its trade receivablews outstanding at the end of 2008 were due from businesses associatecd withthe U.S. automotive industry, including General Chrysler and Ford.
Its 2008 annual report also includefd the followingcautionary disclosure: “If any of thesew three major domestic automotivw companies were to make a bankruptcy filing, it coul d lead to similar filings by supplierzs to the automotive industry, many of whom are customer s of the company. The company thus could be adversely impactedr not only directly by the bankruptcyg of a major domesticautomotive manufacturer, but also indirectly by the resultangt bankruptcies of other customers who supply the automotive industry.
The nature of that impact could be not only a reductionb infuture sales, but also a loss associated with the potentiao inability to collect all outstandinb accounts receivables. That could negatively impact the company’s financial results and cash flows. The company is monitorinf this situation closely and has taken stepsw to try to mitigate its exposure to suchadversse impacts, but because of current market condition s and the volume of business it cannot eliminate these risks.
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