GM bondholders to meet Monday: source

NEW YORK (Reuters) - The committee representing General Motors Corp bondholders plans to meet later on Monday to discuss a debt restructuring plan, according to a source familiar with the situation.

GM has offered bondholders 8 cents on the dollar in cash, 16 cents on the dollar in new, unsecured debt; and a 90 percent stake in the automaker, said the source, who spoke on condition of not being identified by name.

With about $28 billion in debt to bondholders, the offer would translate into $2.2 billion in cash, $4.3 billion in debt and an additional stock-based payout in a recapitalized company that would all but wipe out current stockholders.

GM's debt weakened and its credit protection costs rose on Monday after the government balked at offering more bailout money for now and said bankruptcy was an option.

Bondholders said in a statement on Monday they were "very disappointed" that the government and company have had no real dialogue with bondholders while designing the overhaul of GM.

"Bondholders did not cause GM's problems, as the low-coupon, investment-grade bonds they purchased were largely used by the company to fund daily operations and, more recently, to pay for retiree costs," the debt holders said in a statement.

GM has $1 billion in convertible debt coming due on June 1, which is close to the 60-day deadline set by the Obama administration for GM to resubmit its overall restructuring plan.

(Reporting by Walden Siew, Editing by Jonathan Oatis)