New York  - Troubled US automaker General Motors (GM) reported Wednesday that its bondholders refused a compromise solution for their claims, moving the Detroit-based company closer to bankruptcy.

The auto giant said that its offer of a swap of GM bonds worth 27 billion dollars for a 10-per-cent share of equity was less than what bondholders wanted.

The US government, which has provided GM with 19.4 billion dollars in loans, has given the company till June 1 complete its restructuring or file for bankruptcy.

According to US media reports, due to the company's urgent need for financing, the US government's share in GM is likely to rise from its current 50 per cent to 70 per cent. (dpa)