General Motors, once the largest U.S. auto maker by far, will file for bankruptcy on Monday in federal court in New York City, FOX Business Network has confirmed.

The filing will come after an announcement by President Barack Obama during which he will provide details of how his Administration plans to guide GM through the restructuring, according to people familiar with the scenario.

Meanwhile, on Friday, the Detroit-based car maker was reportedly negotiating the sale of two of its once high-profile brands: Hummer and Saturn, among others.

People in Washington have told FOX Business that the Hummer sale may be being delayed by the Treasury Department. Details were scarce, however.

Also Friday, GM continued to negotiate with its creditors regarding a proposal offered by GM that would increase its bondholders’ stake in a new restructured company to 10% with the opportunity to increase that stake to 25%.

The company needs its creditors on board if it hopes to pass through the bankruptcy and restructuring process quickly, a situation that appears to be taking shape for Chrysler.

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Adam Shapiro joined FOX Business Network (FBN) in September 2007 as a New York based reporter.

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