GM Reaches Tentative Deal to Give Bondholders Stake in Company

General Motors announced today that it has reached a tentative deal with some of its lenders, which would give them a 10 percent stake in the new company and the ability to buy more shares if the recovery of the automaker goes well.

The bondholders would receive warrants to buy an additional 15 percent stake in a newly organized GM. In exchange they would have to agree to give up their claims against the company and support the automaker's restructuring plan, which is being overseen by the Treasury Department. The company is likely to file for bankruptcy this Monday, though some paperwork could be submitted over the weekend.

GM added that if the bondholders continue to oppose the bankruptcy plans, the Treasury would "substantially" cut their stakes in the reorganized company.

The automaker said it has received word that an unofficial group of unsecured bondholders, who hold about 20 percent of GM's $27.2 billion of debt, has indicated it would support the deal.

GM is also set to get fresh aid on top of the $19.4 billion it has already received from the United States and the $400 million it already collected from Canada.

The U.S. Treasury is set to give GM about $30 billion in new aid, while Canada is poised to contribute another $9.5 billion.