While the GM bankruptcy casts an uncertain light on its supplier contracts with U.S. companies, Stillwater Mining has long been prepared to weather a restructuring or outright loss of its GM contract.
As General Motors filed for the fourth largest bankruptcy in history Monday as part of the Obama Administration's plan to downsize the automaker and give a majority ownership stake to the federal government, among the GM suppliers, dependent on the fortunes of the auto industry, is Montana's Stillwater Mining.
In a press release filed last month with the SEC, Stillwater CEO Frank McAllister said, "The overall consequences of a General Motors bankruptcy are difficult to predict. The contractual floor prices in our automotive contracts and the collectability of our accounts receivable could be placed in jeopardy. We are monitoring these risks closely."
