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Rediff.com  » Business » GM owes ArcelorMittal $9.6 million

GM owes ArcelorMittal $9.6 million

Last updated on: June 02, 2009 16:48 IST

Bankrupt General Motors has to pay $9.55 million (about Rs 450 million) in trade debt to the world's largest steel maker ArcelorMittal.

The car maker, which filed for bankruptcy protection under Chapter 11 on Monday, owes $172.81 billion in total debts to its 50 largest creditors, including ArcelorMittal.

In its filing with the bankruptcy court in the southern district of New York, GM said it has a 'trade debt' of $9.55 million to be paid to NRI-billionaire Lakshmi Mittal-led ArcelorMittal.

According to the filing, the auto maker has assets worth $82.29 billion.

Under Chapter 11 bankruptcy protection, the company can continue with its operations and is protected from the creditors.

Among the 50 largest creditors named in the filing, GM has to pay the maximum of $22.76 billion to Wilmington Trust Company. The second largest creditor is International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, which has to get $20.56 billion.

In the case of Wilmington Trust, GM has termed the money owed as 'bond debt' while for UAW, the amount of $20.56 billion is part of 'employee obligations.'

GM has to pay $4.4 billion to Deutsche Bank AG, which is 'bond debt.'

Other names in the list of creditors include Bank of New York Mellon, Canada-based Magna International, Hewlett Packard & Co, telecom major AT&T Corp, auto parts maker Visteon Corp, tyre maker Goodyear Tire & Rubber and oil giant Exxon Mobil Corp.

The company has to pay $26.75 million to Magna International -- the Canadian entity along with a Russian bank would be taking over the American auto maker's European operations, including the Opel and Vauxhall.

Interestingly, Visteon Corp has also filed for bankruptcy protection and GM owes it as much as $9.8 million.

Bank of New York Mellon has to receive $175.98 million, Hewlett Packard ($17.01 million), AT&T ($10.73 million), Goodyear Tire & Rubber ($6.81 million) and Exxon Mobil ($6.25 million).

Battered by the financial turmoil, GM has been witnessing steep fall in sales and incurred massive losses of $30 billion in 2008.

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