Tuesday, June 02, 2009

GM’s woes include owing CSX

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Amid fallen giant General Motors Corp.’s larger troubles,the beleaguered U.S. auto manufacturer owes CSX Corp. $8.9 million for automotive shipments. CSX hopes to receive some reimbursement despite GM’s declaration of bankruptcy June 1.

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"We've had informal discussions about that they would assume our contract and wouldn't be able to get out of bankruptcy until they made good," CSX spokesman Garrick Francis said. Francis said CSX has carrier liens on all the goods that are in transit so it won't lose money on those carloads.

CSX’s involvement and exposure is relatively small, given that Detroit-based GM owes creditors roughly $172 billion.