The Obama administration says GM's proposed restructuring deal is an important step in pulling the company from the brink. The plan would make the federal government a majority shareholder in the automaker,
But the administration says it hasn't yet made a final decision on whether to accept the deal.
GM plans to ask the government to take more than 50 percent of its common stock in exchange for canceling half the government loans to the company as of June 1. The swap would cancel about $10 billion in debt.
In addition, GM is offering stock to the United Auto Workers for at least 50 percent of the $20 billion the company must pay into a union run trust. The restructuring plans would also see the automaker shed 21,000 jobs and drop its Pontiac division.
GM CEO Fritz Henderson says if the debt exchange isn't successful, he would expect GM to file for bankruptcy protection somewhere around June 1.