Sorvino Comments on General Motors Critical Vendors List
General Motors (GM) owes hundreds of millions of dollars to major suppliers who have never made an auto part, rubber tire or sheet of steel -- and they're not likely to get paid anytime soon. GM is on the hook for more than $100 million for advertising it purchased before filing for bankruptcy earlier this month. The list of utilities who are GM creditors takes up 80 pages in its bankruptcy filing. 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 may have to take a back seat in the bankruptcy process.
"This is affecting many many different industries, far more than people realize," said Heidi Sorvino, who is representing some of GM's suppliers. "If you're a small supplier, and you live hand to mouth, you need that check," she continued. "You have your own operating expenses, payroll and leases." Sorvino expects widespread bankruptcies of smaller GM vendors. Those bankruptices could lead to many workers losing their jobs who did not even realize they were depending on GM for their livelihood.
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