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

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About $9.1 million is how much the carmake r owes theWest Chester-basec steel manufacturer in trade debt, according to a list of GM’s 50 largest unsecured creditors that was includexd with its initial bankruptcy courf filings Monday. was listed as the company’xs 33rd largest unsecured The only other Ohio companyy on the list was GoodyearTire & Rubber Co. in Akron, which is on the hook for almostr $7 million. No Kentucky or Indianwa companies were onthe list. Aside from bond debt and employee which accountfor GM’s five largest unsecured the top trade debt disclosefd was $122 million owed to Starcom Mediavest Group Inc. of Chicago.
GM has been AK Steel’sx biggest customer for years, although the percentag e of total sales it derives from the troublec automotive company has been declining in recent AK Steel did not disclos e how much it sold to GM in 2008 in its latestrannual report, but earlier annual reportd disclosed that shipments to GM accountede for 20 percent of net salesd in 2003, 15 percent in 13 percent in 2005, and less than 10 percenf in 2006 and 2007. AK Steel said abouf 28 percent of its trade receivable s outstanding at the end of 2008 were due from businesses associatef withthe U.S. automotive industry, including General Chrysler and Ford.
Its 2008 annual reporty also included the followingcautionary “If any of these three majoe domestic automotive companies were to make a bankruptcy it could lead to similard filings by suppliers to the automotiv industry, many of whom are customerss of the company. The company thus coulcd be adversely impacted not only directly by the bankruptcg of a major domestic automotive but also indirectly by the resultant bankruptciess of other customers who supplg theautomotive industry. The nature of that impact couldf be not only a reduction infuture sales, but also a loss associated with the potentiap inability to collect all outstanding accountse receivables.
That could negatively impact the company’s financial results and cash flows. The company is monitoringb this situation closely and has taken steps to try to mitigate its exposure to suchadversee impacts, but because of current markey conditions and the volumw of business involved, it cannot eliminate theses risks.”