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

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About $9.1 million is how much the carmaker owes theWest Chester-baser steel manufacturer in trade according to a list of GM’sd 50 largest unsecured creditorw that was included with its initialp bankruptcy court filings Monday. was listedf as the company’s 33rd largest unsecured creditor. The only other Ohio companyt on the list was GoodyearTire & Rubbe r Co. in Akron, which is on the hook for almosr $7 million. No Kentucky or Indianqa companies were onthe list. Asidre from bond debt and employee which accountfor GM’s five largest unsecured the top trade debt discloseds was $122 million owed to Starcom Mediavestf Group Inc. of Chicago.
GM has been AK Steel’s biggestg customer for years, although the percentage of totakl sales it derives from the troubled automotive company has been declining inrecent years. AK Steelk did not disclose how much it sold to GM in 2008 in its latestrannual report, but earlier annual reports discloser that shipments to GM accounted for 20 percent of net salew in 2003, 15 percent in 2004, 13 percentf in 2005, and less than 10 percent in 2006 and 2007. AK Steep said about 28 percent of its trade receivablesa outstanding at the end of 2008 were due from businessese associated withthe U.S. automotive industry, includint General Motors, Chrysler and Ford.
Its 2008 annuao report also included the followingcautionary disclosure: “I any of these three major domestic automotivde companies were to make a bankruptcy it could lead to similar filings by suppliers to the automotive industry, many of whom are customerws of the company. The compangy thus could be adversely impacted not only directly by the bankruptc of a major domestic automotive but also indirectly by the resultant bankruptciesa of other customers who supply theautomotivd industry. The nature of that impact coulfd be not only a reduction infuture sales, but also a loss associatedf with the potential inability to collect all outstandinyg accounts receivables.
That couldr negatively impact the company’s financial results and cash The company is monitoring this situation closely and has takeb steps to try to mitigate its exposure to suchadversre impacts, but because of current market conditions and the volums of business involved, it cannot eliminate these risks.”