General Motors will file for bankruptcy Monday and the U.S. government will take a 60 per cent ownership stake, a U.S. congressional official says.

The Associated Press reports an official familiar with the plans says President Barack Obama will announce the government is providing an additional US$30 billion in aid for the auto maker.

Obama is expected also to make the case that the government will stay out of GM's business decisions.

GM CEO Fritz Henderson will hold a news conference following Obama's announcement.

A second person familiar with the plan said that the Canadian government would take a 12.5 per cent stake in GM. The United Auto Workers trust for health care expenses would get a 17.5 per cent share.

Prime Minister Stephen Harper will make a joint announcement with Ontario premier Dalton McGuinty and Industry Minister Tony Clement Monday.

The final hurdle was cleared Sunday allowing for General Motors to smoothly gear down into bankruptcy protection.

GM bondholders narrowly voted in favour of a sweetened deal to swap their debt for a piece of the company, post bankruptcy.

A statement said 54 per cent of institutional bondholders, who possess slightly more than half of GM's $27.5 billion debt, agreed to exchange their unsecured bonds for a 10 per cent ownership stake, plus assurances to purchase more at a later date.

Last week, the bondholders rejected an exchange offer that didn't include such assurances.

Analysts say the agreement allows GM to have "an easier transition" into bankruptcy protection, and clears the way for a smoother restructuring.

"It means that more pieces of the puzzle are in place," auto analyst Bernie Wolf told CTV News Channel on Sunday. "It means that more of the stakeholders have agreed about what was going to happen, how the company was going to be divvied up."

Under the restructuring plan, the United Auto Workers union, through its retired health care fund, would get a 17.5 per cent stake in the new GM, and assurances to buy an additional 2.5 per cent.

GM had been under a government-imposed deadline to reach deals with the union and bondholders to cut debt and expenses by June 1.

The U.S. Treasury department lent GM $20 billion to keep it afloat and the automaker is poised to get another $30 billion as it reorganizes under court protection.

The deals were not seen as a way to save the ailing carmaker from bankruptcy protection, but rather to clarify ownership structure going into the restructuring process.

Henderson is expected to formally file for bankruptcy protection in New York Monday.

It's expected that GM will detail some 20,000 job more cuts and the closure of about a dozen plants by the end of 2010.

In the U.S. GM has already said it will slash 40 per cent of its network of 6,000 retail dealerships by next year and drop four of its brands -- Hummer, Saab, Saturn and Pontiac.

What about Canada?

GM Canada, on the other hand, is expected to emerge from the massive restructuring process relatively unscathed, according to auto analysts.

It has been hit by the closure of a truck plant in southern Ontario, slumping sales and big job layoffs, but GM Canada won't follow its American parent company into Chapter 11 bankruptcy protection.

Canadian Auto Workers president Ken Lewenza has said he believes the company plans to keep its Canadian operations up and running while it restructures due to burgeoning demand for the cars it produces in Oshawa.

It is expected that the federal and Ontario governments will announce on Monday how much bailout money they're giving GM and what they will receive in terms of job guarantees and a stake in the company.

The Canadian portion of the total bailout is expected to be about C$10 billion.

Earlier in May Canadian auto workers agreed to deep wage cuts and other concessions. Labour, benefits and pension costs were slashed by around $22 an hour, bringing them more in line with that of competitor Toyota Canada.