GM makes new offer to ease bankruptcy

US auto giant General Motors says if its bondholders accept the company's bid to sell its assets under bankruptcy protection law, they will be offered 10 percent of GM's stocks.

Based on GM's new offer, bondholders will be offered 10 percent of the company when restructured in addition to warrants to purchase another 15 percent, explained the Detroit-based carmaker through a US regulatory filing on Thursday.

In return, creditors who represent about 20 percent of the company's debt, will allow GM to sell its profitable assets to a government-funded company established in accordance with the bankruptcy law.

The new company would cede 17.5 percent of its stock to the United Auto Workers union's health-care trust fund and 10 percent to back the "old GM" to pay creditors.

The GM filing says if the bondholders do not agree to support the sale, then they would have less or no chance to obtain stocks or warrants.