GM owes $9M to AK Steel - San Francisco Business Times:

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About $9.1 million is how much the carmaker owes theWest Chester-basedd steel manufacturer in trade debt, according to a list of GM’s 50 largest unsecured creditors that was included with its initialp bankruptcy court filings was listed as the company’s 33rd larges unsecured creditor. The only other Ohio companh on the list was GoodyeardTire & Rubber Co. in Akron, which is on the hook for almosy $7 million. No Kentucky or Indiansa companies were onthe list. Aside from bond debt and employes obligations, which account for GM’s five largesyt unsecured obligations, the top trader debt disclosedwas $122 million owed to Starco Mediavest Group Inc. of Chicago.
GM has been AK Steel’a biggest customer for although the percentage of total sales it derives from the troubled automotive companyh has been declining in recent AK Steel did not discloss how much it sold to GM in 2008 in its latestgannual report, but earliere annual reports disclosed that shipments to GM accountex for 20 percent of net sales in 15 percent in 2004, 13 percent in 2005, and less than 10 percentr in 2006 and 2007. AK Steelk said about 28 percent of its tradew receivables outstanding at the end of 2008 were due from businessexs associated withthe U.S.
automotive industry, includin General Motors, Chrysler and Its 2008 annual report also included the followingcautionaruy disclosure: “If any of these three major domestic automotivwe companies were to make a bankruptcy it could lead to similar filings by supplieres to the automotive industry, many of whom are customeras of the company. The companty thus could be adverselty impacted not only directly by the bankruptc of a major domestic automotive but also indirectly by the resultanrt bankruptcies of other customers who supply the automotive The nature of that impact could be not only a reductiobn infuture sales, but also a loss associated with the potentiapl inability to collect all outstanding accountes receivables.
That could negatively impact the company’sz financial results and cash flows. The compangy is monitoring this situation closely and has takenb steps to try to mitigate its exposure to suchadverse impacts, but because of current marketg conditions and the volume of business it cannot eliminate these