Not paying your bills, just ask GM (during its meltdown)

Every one of us has had a concern about bills or know someone that has been adversely impacted by the economy. The phone bill, the electric bill, Internet and technology services all add up, but how about to the tune of $250M? That's the amount that GM owes, but guess what, they cannot pay vendors providing those services as they are not on the "critical vendor" list, so companies like AT&T and HP won't see a dime.

To be fair, about $100M of this debt is owed to advertising agencies, but that is a hefty sum for an industry also impacted by failed or failing automakers. Since these businesses are outside of the transportation industries that support GM, they may never see a single payment. A bankruptcy court would then have to rule if any payments would be received at a later time. Of all the monies owed, this is just one monthly payment. GM owes suppliers and creditors over $18B and the company is currently cash poor. Being strapped for cash means that this may be one of just many months to come that GM is behind on its bills.

Not all bad news, though. GM's largest supplier of automotive parts, Delphi Corporation, is still on track to get paid and continue in a business relationship with GM. On a historic note and not too long ago, GM saved Delphi from bankruptcy. Delphi was a subsidiary of GM making automotive parts and components for multiple GM vehicles across all product lines. GM will continue to work with Delphi, even through they will be paying pennies on the dollar. Maybe not the worst news, but given the status of the industry and the crippling credit structure, it may be only a matter of time when these auto suppliers can no longer tread water while GM reorganizes.