by Calculated Risk on 5/28/2009 05:56:00 PM

From Bloomberg: GM Said to Plan June 1 Bankruptcy as Debt Plan Gains

General Motors Corp. ... plans to file for bankruptcy protection on June 1 and sell most of its assets to a new company, people familiar with the matter said.

GM SEC Filing:

As provided in the Proposal, the U.S. Treasury has indicated that if holders of Notes of an amount satisfactory to the U.S. Treasury have provided (prior to 5:00 pm EDT on Saturday, May 30, 2009) statements of support satisfactory to the U.S. Treasury indicating that they will not oppose the 363 Sale (if conducted on terms substantially consistent with the Proposal), the U.S. Treasury currently would propose that New GM issue to Old GM as a portion of the consideration offered in connection with the 363 Sale 10% of the common equity of New GM and warrants to purchase an aggregate of 15% of the equity of New GM. The U.S. Treasury has indicated that if these statements of support are not received, the amount of common equity and warrants that it would propose be issued by New GM to Old GM would be substantially reduced or eliminated.

Also from the NY Times: New G.M. Plan Gets Support From Key Bondholders

It sounds like they made the bondholders a deal they couldn't refuse.