GM Prepares for Bankruptcy Announcement

The German funds are available to Opel immediately, as it attempts to shield itself from cuts if GM files for bankruptcy protection. Opel employs 25,000 people in Germany, nearly half of GM Europe's work force. Under the deal, four factories in Germany would stay open, though Magna previously has said it would need to shed some 2,600 jobs.

GM is racing to meet the government's Monday deadline to qualify for more aid. It already has received about $20 billion in government loans and could get $30 billion more to make it through what is expected to be a 60- to 90-day reorganization in bankruptcy court.

Beyond the bankruptcy announcement Monday, GM is expected to reveal 14 plants it intends to close and name the buyer of its Hummer division.

Treasury Secretary Timothy Geithner, who was traveling to China, followed developments closely Sunday taking a military aircraft with the latest in communications equipment that allowed him frequent contact with Steven Rattner, head of the administration's auto task force, and Obama economic aide Lawrence Summers.

The Treasury on Thursday offered bondholders 10% of a newly formed GM's stock, plus warrants to buy 15% more to erase the debt. Last week, GM withdrew an offer of 10% equity after only 15% of the thousands of bondholders signed up.

The current 54% acceptance represents only $14.6 billion, but by lining up support in advance of a bankruptcy protection filing, GM is likely to find it easier to persuade a judge to apply terms of the sweetened offer to the rest of its unsecured debt.