Updated

The Obama administration is preparing to move General Motors into bankruptcy as early as next week under the terms of a plan that would give GM tens of billions of dollars more in government financing, the Washington Post reported.

Under the GM draft bankruptcy plan, the automaker would receive just under $30 billion in additional federal loans, a source told the Post, which would up the government's overall investment in the company to nearly $45 billion.

But a source with knowledge of the process and talks told FOX News there is no chance the White House Auto Task Force will "prepare" to take GM into bankruptcy next week. The process is too massive for so quick a move and could require preparations up to the White House's imposed restructuring deadline of May 31, the source indicated.

A large obstacle remains for GM, which must still make an agreement with investors who hold $27 billion worth of company bonds, the Post reported.

FOX Business News reports that the Obama administration is seeking to play down prospects that taxpayers could end up owning most of GMAC, the financing arm of GM.

The Treasury Department announced Thursday it will invest another $7.5 billion in the struggling auto finance company and will convert an existing loan to GM into a one-third stake in GMAC.

The government's ownership in GMAC "will be determined over time," a senior government official said.

Combined with the Treasury Department's initial $5 billion investment in GMAC in December, taxpayers will have invested $12.5 billion in GMAC -- more taxpayer funds than in all but four other large financial firms that the government has invested in under the Troubled Asset Relief Program, or TARP.

Senior administration officials would not speculate on how much the government will ultimately own in GMAC, in part because of additional pending capital raises GMAC is required to make under the government's recent stress tests for financial firms. The test results mandated GMAC to raise $9.1 billion in new capital, which will be dilutive to all current shareholders, including the Treasury.

But as part of the additional investment announced Thursday, the Treasury said it plans to exercise "in the very near future" a previously existing option to convert an $884 million government TARP loan to GM into GMAC common equity, which will give Treasury a 35.4% stake in GMAC.

Officials conceded that with that stake, the new $7.5 billion GMAC investment ultimately could give the government majority control of GMAC. But "that is a hypothetical piled on remote hypotheticals," one official said, noting that the company can pursue other sources of capital before the government would have to provide additional funding to GMAC, and that the company has opportunities under TARP to buy out or replace the government's investment along the way.

"GMAC has options over time," an official said.

The government's ultimate ownership level in GMAC will depend on how much new capital GMAC can raise outside of these government transactions -- and if it can. Of the additional $7.5 billion the government is investing in GMAC, officials said $3.5 billion will go toward meeting its new capital requirement under the stress test. That will leave GMAC to raise another $5.6 billion in capital by November.

Like other firms that underwent the stress test, GMAC has until June 8 to present its plan for raising this additional capital to the government. The capital could come from private investors, but if GMAC can't get the money from them, its default position is to go back to Treasury for the final amount, which would put taxpayers in the position of owning more than 50% of the firm.

The other $4 billion of the $7.5 billion announced Thursday will go to support Chrysler, which the government forced into bankruptcy earlier this month. Under the bankruptcy, GMAC is taking over auto and dealer lending for Chrysler from Chrysler Financial, which as of now, is continuing to operate.

"Over the past several months, the contraction of credit in the auto-finance markets has helped drive our auto industry into a historic crisis. This new arrangement with GMAC will help provide a reliable source of financing to both auto dealers and customers seeking to buy cars," Treasury Secretary Timothy Geithner said in a statement. "A recapitalized GMAC will offer strong credit opportunities, help stabilize our auto financing market, and contribute to the overall economic recovery."

In its statement, the Treasury said that the additional funding will require GMAC to comply with new government rules limiting executive compensation and other corporate governance mandates. Officials said previously announced changes in the GMAC board are proceeding, but that no management changes were expected at the company currently.

As part of the additional Treasury investment in GMAC, the Federal Deposit Insurance Corporation announced it approved participation of GMAC Financial Services, a subsidiary of GMAC, in the agency's Temporary Liquidity Guarantee Program to allow the company to issue up to $7.4 billion in new FDIC-guaranteed debt. The agency said GMAC will pay a fee to the FDIC for this guarantee.

The FDIC said that in connection with receiving the approval, GMAC committed to develop a "funding plan."

"The plan will reflect GMAC's management of the bank's funding and deposit costs, with a focus on diversifying funding sources and reducing the bank's overall cost of deposit funding," the FDIC said.

"GMAC and the bank have also committed to maintain bank capital at a level well above the regulatory minimums," the FDIC continued. "These commitments, combined with the current level of TLGP-generated fees and the newly enacted holding company assessment authority, will fully protect" the FDIC's bank deposit insurance fund, the agency added.

Treasury's new investment in GMAC is being made through a purchase of $7.5 billion in mandatory convertible preferred stock that will pay the government a 9% annual dividend.

GMAC does not currently have publicly traded stock, but a public offering of GMAC common stock is one option the government and GMAC's other major shareholder, the private equity firm Cerberus Capital Management, could consider to repay taxpayers.

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FOX Business Network's Peter Barnes contributed to this report.