GM's Bondholders Accept New Deal

"General Motors' bondholders have accepted an amended debt for equity offer," CNBC says it has learned.

For its part, the Associated Press is reporting at this moment that GM is "to make new offer to bondholders if they don't oppose Chapter 11 asset sale."

On Wall Street, stocks are "sharply higher" in part because of the CNBC report, AP adds. The wire service also says:

Trading in GM shares is halted. CNBC is reporting that bondholders would get 10% of the equity in the company. That might still not spare the company from bankruptcy, however.

It is also being reported that GM will soon announce it is closing 14 factories.

Update at 10:25 a.m. ET. More from the AP, which now reports that:

General Motors Corp. says a committee of bondholders has agreed to a sweetened deal to erase some of the automaker's debt in exchange for company stock.

The company said in a statement Thursday that it offered bondholders 10% of the company's stock with warrants to buy up to 15% if they agree to support selling the company's assets to a new company under bankruptcy court protection.

The company made the disclosure in a filing with the U.S. Securities and Exchange Commission. (Go here to see that SEC filing.)

The filing says if the bondholders didn't agree to support the sale, then the amount of stock and warrants they get would be reduced or eliminated.

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