UPDATE 1-U.S. gets 60 pct of GM after bankruptcy-official
* US envisions 60-90 day bankruptcy timeframe
* Canada gets 12 percent of GM
* GM to seek to pay suppliers, continue warranties (Adds first day bankruptcy court motions, quotes)
By John Crawley
WASHINGTON, May 31 (Reuters) - General Motors Corp GM.N will file for bankruptcy protection on Monday to complete a restructuring within three months that will give U.S. taxpayers a 60 percent stake for $50 billion in aid, an Obama administration official said on Sunday night.
The total includes nearly $20 billion already extended to the automaker this year, and there are no plans for additional assistance, according to the official, who requested anonymity ahead of President Barack Obama's Monday remarks on GM.
"The government really has no desire to own equity stakes in companies any longer than is absolutely necessary and will actively seek to dispose its ownership interest as soon as it is practicable to do that," the official said.
Canada will loan GM $9.5 billion in return for about 12 percent equity. In exchange for concessions, a United Auto Workers retiree healthcare trust will own 17.5 percent equity and unsecured bondholders, 10 percent. The union and debtholders will also get warrants to buy more of GM.
Secured lenders that include major banks will be covered in full, according to the government.
The Obama administration will largely shape the new board of directors and the UAW and Canadian authorities will each be allowed to appoint one member to the board.
GM is expected to operate normally during bankruptcy. Employees will be paid on schedule and pension plans will be retained.
In its "first day" bankruptcy court motions, the automaker will seek to pay suppliers and to get permission to honor its customer warranties and dealer incentives, the administration said.
It is expected that dealers losing their franchise agreements with GM as a result of the bankruptcy will be offered an 18-month timetable to wind down their operations. (Reporting by John Crawley and David Lawder; Editing by Andrea Ricci)
