The new General Motors ( GM) viability plan looks like a tough sell -- not just to bondholders, but also to the public. Bondholders would own about 10% of the company after swapping $1,000 worth of debt for 225 shares, which would then be reduced to two shares in the new General Motors in a 1-for-100 reverse stock split. The federal government would ante up $9 billion more this year than GM initially sought, taking the total to $27 billion. By one interpretation, shareholders are winners, in a sense, because the plan envisions that they would hold 1% of the shares in the new GM. That means existing shares would not go to zero, which is what normally happens in a bankruptcy. Still, Standard & Poor's analyst Efraim Levy reiterated his sell recommendation on GM shares on Monday, noting that, even though shareholders may get more than zero, it still isn't much. "Whether there is a bankruptcy filing or not, we see it as lose-lose for shareholders via dilution from equity issuance or loss of value via a filing," Levy wrote in a report. GM shares rose about 21% Monday to close at $2.04, a move that KDP Investment Advisors analyst Kip Penniman considers outlandish. In a report, he wrote: "Absurdly enough, equity holders are celebrating their future 1% ownership stake in the company." For bondholders, "terms of the offer are even less attractive than we envisioned on several fronts," Penniman writes. He said the bondholders' 10% ownership stake would represent a return of about 5 cents on the dollar, less than the bonds trade for today. By contrast, he said, GM would still fund the United Auto Workers' retiree health care trust half with cash and half with debt.