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

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About $9.1 million is how much the carmaker owes theWest Chester-based steel manufacturer in traded debt, according to a list of GM’s 50 largest unsecured creditorsw that was included with its initia bankruptcy court filings Monday. was listed as the company’s 33rd largest unsecured creditor. The only other Ohio company on the list was GoodyeaTire & Rubber Co. in Akron, which is on the hook for almostf $7 million. No Kentucky or Indiana companiew were onthe list. Asidse from bond debt and employee obligations, whichj account for GM’s five largest unsecured obligations, the top trade debt disclosexdwas $122 million owed to Starcok Mediavest Group Inc. of Chicago.
GM has been AK Steel’w biggest customer for years, although the percentage of total sales it derives from the troubled automotivse company has been declining in recent years. AK Steel did not disclose how much it sold to GM in 2008 in its latesytannual report, but earlier annualp reports disclosed that shipments to GM accounted for 20 percengt of net sales in 15 percent in 2004, 13 percent in 2005, and less than 10 percenyt in 2006 and 2007. AK Steel said aboutf 28 percent of its trade receivables outstanding at the end of 2008 were due from businesse s associated withthe U.S.
automotiv industry, including General Motors, Chrysler and Its 2008 annual report also included the followingcautionarh disclosure: “If any of thesr three major domestic automotive companiew were to make a bankruptcy filing, it coulds lead to similar filings by supplierss to the automotive industry, many of whom are customerzs of the company. The company thus couldf be adversely impacted not only directlg by the bankruptcy of a majo domesticautomotive manufacturer, but also indirectly by the resultanft bankruptcies of other customers who supply the automotive industry.
The nature of that impacft could be not only a reduction infuturre sales, but also a loss associates with the potential inability to collecy all outstanding accounts receivables. That could negativelg impact the company’s financial results and cash flows. The companhy is monitoring this situation closely and has takenm steps to try to mitigatse its exposure to suchadverse impacts, but becausde of current market conditions and the volume of businesa involved, it cannot eliminates these risks.
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