NEW YORK (MarketWatch) -- Senior officials in the Obama administration said late Sunday the U.S. government will provide $30 billion in financing to General Motors Corp. to allow it to continue to operate through a historic Chapter 11 bankruptcy, expected to last an estimated 60 to 90 days.

Officials confirmed that a majority of GM GM, +2.45% bond holders approved the deal to allow the ailing car maker to restructure $27 billion in debt. See full story on GM bondholders.

"For the better part of a century, the General Motors Corporation has been one of the most recognizable and largest businesses in the world," one senior U.S. official said in a prepared statement to reporters. "Today will rank as another historic day for the company -- the end of an old General Motors, and the beginning of a new one."

Describing the process as "painful but necessary," officials said GM will move ahead with plans to close 11 facilities will idle three more. Specific numbers of layoffs will come from GM, officials said.

The U.S. government will own 60% of equity in the new General Motors, with little or no control over day-to-day affairs. The U.S. government will receive approximately $8.8 billion in debt and preferred stock and will name some of the new company's board members.

Officials did not confirm or deny reports that Al Koch, a turnaround specialist, will serve as chief restructuring officer.

An additional $9.5 billion will be lent to GM by Canada and the Province of Ontario, with the Canadian government in line to own 12% of the new GM and receive approximately $1.7 billion in debt and preferred stock. The Canadian government will also have the right to select one initial director.

President Barack Obama is expected to speak about the GM bankruptcy on Monday, with the company also planning a formal announcement before the stock market opens.

Government says it's done lending to GM

Officials said the government would eventually sell its stake in General Motors, but did not lay out a target date. On the conference call with reporters, the officials said they didn't expect GM to require any more funding from the government.

"The government has no desire to own stakes in companies and will actively seek to dispose ownership interest," an official said. "The goal is to promote strong companies that can become profitable quickly."

As a result of this restructuring, GM will lower its break-even point to sales of 10 million cars per year. Before the restructuring, GM needed to sell about 16 million car sales a year to turn a profit.

The UAW made "important concessions" on compensation and retirees health care, Obama administration officials said.

The new GM will establish an independent trust, known as a voluntary employee beneficiary association (VEBA), to provide health-care benefits for GM's retirees. The VEBA will be funded by a note of $2.5 billion, payable in thee installments ending in 2017 and $6.5 billion in perpetual preferred stock. The independent trust will also receive 17.5% of the new GM and warrants to purchase an additional 2.5% stake in the company.

The UAW's existing $20 billion pension obligations will disappear as part of the bankruptcy.

The new GM will pursue a commitment to build a new small car in an idled UAW factory, which, when in place, will increase the domestic-sales share of U.S.-produced vehicles from its current level of about 66% to over 70%.

Officials confirm $27 billion debt deal

The steering committee for a portion of GM creditors has confirmed that bondholders representing at least 54% of GM's unsecured debt have agreed to exchange their portion of the company's $27.1 billion unsecured paper for their pro-rata share of 10% of equity in the new GM, plus warrants for an additional 15% of the new company.

"The bankruptcy court process will be used to confirm this treatment for those bondholders and other unsecured creditors that failed to accept or did not participate in the offer that was accepted by the aforementioned majority," the U.S. officials said.

GM will continue to honor its consumer warranties. This past week, the U.S. Treasury made available the Warranty Support Program to GM, with $361 million in funding to provide a backstop for the orderly payment of warranties for cars sold during the restructuring period.

Employees will continue to receive regular compensation, including salary, wages and ordinary benefits. GM will seek authority at its first-day hearing to continue to pay suppliers as normal.