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 Advertising-related firms who are owed millions in fees from bankrupt General Motors Corp. may have to wait longer than other creditors to get paid. The auto parts suppliers on the troubled carmaker's critical vendor list will be first in line for payment, according to CNN, which will come as a blow to firms like Starcom Mediavest Group, which is owed $121 million and is GM's largest creditor. Although none of GM's ad firm creditors appear to have their existence put in jeopardy by a delayed GM payment -- as is the case with the parts suppliers -- it doesn't mean the bankruptcy isn't causing them pain. One company who's felt a pinch is media conglomerate CBS Corp. (NYSE:CBS). The company saw its credit rating lowered by Standard & Poor's to BBB- last month because of the advertising dollars it could potentially lose from GM spending less in the future. Its new rating will likely make CBS' future borrowing costs higher. Overall, GM spent $2.9 billion in total U.S. ad spending in 2008, down 5% from the previous year, according to AdAge. Those numbers are expected to drop dramatically in 2009. Media companies and advertisers are already adjusting by downsizing, while others may pursue more drastic measures such as a sale. - Gerald Magpily See CNN article
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