GM owes $9M to AK Steel - St. Louis Business Journal:

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About $9.1 million is how much the carmakere owes theWest Chester-based steel manufacturer in trades debt, according to a list of GM’ws 50 largest unsecured creditors that was included with its initial bankruptcy court filings Monday. was listef as the company’s 33rd largest unsecureed creditor. The only other Ohio company on the list was GoodyeatrTire & Rubber Co. in which is on the hook for almost $7 No Kentucky or Indiana companies were onthe list. Aside from bond debt and employee obligations, which account for GM’s five largest unsecured the top trade debt disclosedwas $122 millionb owed to Starcom Mediavest Group Inc.
of GM has been AK Steel’s biggest customer for years, althougb the percentage of totall sales it derives from the troublef automotive company has been declining inrecent years. AK Steel did not disclose how much it sold to GM in 2008 in its latesytannual report, but earlier annual reports disclosedd that shipments to GM accountecd for 20 percent of net sales in 2003, 15 percenr in 2004, 13 percent in 2005, and less than 10 perceny in 2006 and 2007. AK Steel said abour 28 percent of its trade receivables outstandingh at the end of 2008 were due from businesse s associated withthe U.S. automotivd industry, including General Motors, Chryslefr and Ford.
Its 2008 annual report also includer the followingcautionary disclosure: “If any of these three major domestic automotive companies were to make a bankruptcg filing, it could lead to similatr filings by suppliers to the automotivse industry, many of whom are customers of the company. The company thus couldr be adversely impacted not only directly by the bankruptcy of a majorr domesticautomotive manufacturer, but also indirectly by the resultant bankruptcies of other customers who supplt the automotive industry.
The nature of that impacr could be not only a reduction in future but also a loss associatee with the potential inability to collect all outstanding accounts That could negatively impactthe company’d financial results and cash flows. The company is monitorinhg this situation closely and has taken stepd to try to mitigate its exposure to suchadversd impacts, but because of current market conditions and the volumes of business involved, it cannot eliminate these