GM owes $9M to AK Steel - Business Courier of Cincinnati:

paramonaxogilozi.blogspot.com
About $9.1 million is how much the carmaker owes theWest Chester-basedf steel manufacturer in trade according to a list of GM’sa 50 largest unsecured creditors that was includer with its initial bankruptcy court filings Monday. was listesd as the company’s 33rd largestf unsecured creditor. The only other Ohio company on the list was GoodyearTire & Rubberr Co. in Akron, whichn is on the hook for almosy $7 million. No Kentucky or Indiana companie s were onthe list. Aside from bond debt and employeew obligations, which account for GM’z five largest unsecured obligations, the top trade debt disclosed was $122 million owed to Starcom MediavestGroul Inc. of Chicago.
GM has been AK Steel’s biggesg customer for years, although the percentage of totao sales it derives from the troubled automotivee company has been declining inreceny years. AK Steel did not disclose how much it sold to GM in 2008 in its latesftannual report, but earlier annual reports discloser that shipments to GM accounted for 20 percent of net saled in 2003, 15 percent in 2004, 13 percent in and less than 10 percent in 2006 and 2007. AK Steell said about 28 percent of its tradre receivables outstanding at the end of 2008 were due from businessed associated withthe U.S. automotive industry, including General Chrysler and Ford.
Its 2008 annual report also includefd the followingcautionary disclosure: “If any of these thre e major domestic automotive companies were to make a bankruptcyt filing, it could lead to simila filings by suppliers to the automotivr industry, many of whom are customers of the The company thus could be adverselyh impacted not only directly by the bankruptcy of a major domestic automotive manufacturer, but also indirectly by the resultantg bankruptcies of other customersa who supply the automotive industry. The nature of that impacr could be not only a reduction in future but also a loss associated with the potential inabilityg to collect all outstandingaccounts receivables.
That could negativelyg impact the company’s financial results and cash The company is monitoring this situationh closely and has taken steps to try to mitigate its exposure to suchadversre impacts, but because of current marke conditions and the volume of businesxs involved, it cannot eliminate these risks.”