The U.S. government could take an equity stake in General Motors ( GM) in a swap for some of the $13.4 billion the automaker has borrowed from the Treasury Department, a published report says.

Bloomberg, citing people familiar with the plan, reports a government stake would be part of an effort to cut GM's debt and improve its balance sheet as the automaker approaches a deadline of June 1 to come up with a plan to become viable. Bondholders, who own $27.5 billion in GM debt, would get a smaller stake, according to Bloomberg. Bondholders had been offered 90% of a new GM's equity by the company.

Bankers and other GM advisers are estimating how much a restructured GM, made up of only profitable assets of the automaker, might be worth in a debt-for-equity swap, the people said, Bloomberg reports.

Spokespeople for the U.S. Treasury and GM declined to comment for the Bloomberg story.

GM is meeting this week with a Treasury team to craft a revised plan to restructure the company, according to the news agency.

Shares of GM fell more than 16% Monday to $1.71 after the New York Times reported the Treasury Department was directing the company to lay the groundwork for a bankruptcy filing by a June 1 deadline.

The Times, citing people who had been briefed on the plans, reported the goal was to prepare for a fast "surgical" bankruptcy. GM insists a quick restructuring is necessary so its image and sales aren't damaged permanently.