As far as the GM bankruptcy issue goes, the number of suppliers affected by the impending closure is countless. However, as a business, that is not all that General Motors has to worry about. Remember that for any corporation or business, debts go far beyond auto suppliers. Some may not even be aligned with the auto manufacturing binge something which was revealed as far as the growing concern on the GM row.
GM has over $100 million in debts, a large chunk of which is from the advertising sector. Date back and you will notice the aggressive nature of advertising and promotional practice that popular businesses undertake and General Motors is among that niche.
Among the company’s top 50 creditors, 10 are outside the auto or transportation industries. GM owes these firms just under $250 million. But they have to take a back seat in the bankruptcy process.
Given that figure alone, you can imagine why the GM bankruptcy filing is taking quite a beating. A lot of businesses stand to lose a lot from the GM mess. And mind you, not all of them are from car parts sector.
(Source) CNN
Tags: 100 million, aggressive nature, Auto Suppliers, back seat, bankruptcy filing, bankruptcy process, binge, business debts, car parts, chunk, creditors, General Motors, GM, growing concern, impending closure, transportation industries