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

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About $9.1 million is how much the carmaker owes theWest Chester-basedx steel manufacturer in trade debt, according to a list of GM’w 50 largest unsecured creditors that was includedr with its initial bankruptcgy court filings Monday. was listed as the company’d 33rd largest unsecured creditor. The only other Ohio company on the list was GoodyeaTire & Rubber Co. in which is on the hook for almosr $7 million. No Kentucky or Indianz companies were onthe list. Asided from bond debt and employee obligations, which account for GM’sx five largest unsecured obligations, the top traded debt disclosedwas $122 million owed to Starcom Mediavest Grouop Inc. of Chicago.
GM has been AK Steel’sz biggest customer for years, although the percentage of totao sales it derives from the troubled automotivw company has been declining inreceng years. AK Steel did not disclose how much it sold to GM in 2008 in its latestannual report, but earlier annuak reports disclosed that shipments to GM accounted for 20 percent of net salexs in 2003, 15 percent in 2004, 13 percenty in 2005, and less than 10 percent in 2006 and 2007. AK Steelk said about 28 percent of its trade receivables outstandinvg at the end of 2008 were due from businessesz associated withthe U.S. automotivre industry, including General Motors, Chryslert and Ford.
Its 2008 annual reporyt also included the followingcautionaryt disclosure: “If any of these three major domestic automotive companiesd were to make a bankruptcy it could lead to similar filings by suppliers to the automotive many of whom are customers of the company. The company thus couldd be adversely impacted not only directly by the bankruptct of a major domesticautomotive manufacturer, but also indirectl y by the resultant bankruptcies of other customers who supply the automotive The nature of that impacyt could be not only a reductionh in future sales, but also a loss associated with the potential inability to collect all outstandingy accounts receivables.
That could negatively impact the company’s financial results and cash flows. The companhy is monitoring this situation closely and has taken stepsw to try to mitigate its exposurew to suchadverse impacts, but because of current marketg conditions and the volume of businessz involved, it cannot eliminate these risks.”