GM ready to file for bankruptcy
Car giant General Motors is expected to file for bankruptcy protection later on Monday, marking the biggest failure of an industrial company in US history, BBC reported.
The stricken firm had until 1 June to present a viable revival plan in return for emergency government funding.
Reports say a majority of bondholders have now agreed to a deal giving them at least a 10% stake in what is likely to emerge as a much smaller company.
President Barack Obama is due to give full details at a news conference.
The BBC's Jonathan Beale, in Detroit, says Mr Obama is expected to announce $30bn (£18.5bn) in new funding for GM.
GM's sales have been hit hard by the financial crisis and the firm has received $20bn in state aid.
In return for more cash the federal government is reported to be receiving a stake of 60% in a new, leaner company due to be re-launched within 90 days.
Senior executives at General Motors have been making final preparations for completely restructuring what was once the world's largest car company, under judicial supervision.
A Chapter 11 bankruptcy filing by GM would rank as the third largest bankruptcy in US history following Lehman Brothers' collapse and the failure of telecoms giant WorldCom.