GM will file for bankruptcy on Monday, Bloomberg says. It will then split into a "good GM, bad GM," with the good GM looking to be profitable within 60-90 days. In a change from the previous plan, current shareholders will get nothing.

In the rosy scenario, the new company, armed with vehicles from GM’s Cadillac, Chevrolet, Buick and GMC divisions, plans to begin making money again within 60 to 90 days, while a bankruptcy court sells or liquidates unprofitable brands such as Saturn and Hummer. Saab already is in bankruptcy.

GM will file for bankruptcy on Monday, Bloomberg says. It will then split into a "good GM, bad GM," with the good GM looking to be profitable within 60-90 days. In a change from the previous plan, current shareholders will get nothing.

When General Motors Corp. files for bankruptcy protection next week, a Dickensian tale of two legal processes will unfold, according to Bloomberg:

In one, a judge will be told that a new entity will emerge within three months with prized assets and a plan to revisit the best of times when GM was the world’s largest carmaker. In the other, Bleak House comes to bankruptcy court as creditors shut out of the new entity will be told to argue for perhaps years about who gets company properties the new GM doesn’t want.
In the rosy scenario, the new company, armed with vehicles from GM’s Cadillac, Chevrolet, Buick and GMC divisions, plans to begin making money again within 60 to 90 days, while a bankruptcy court sells or liquidates unprofitable brands such as Saturn and Hummer. Saab already is in bankruptcy.
Here's who gets what:

The new GM will take some liabilities with it such as an auto supplier financing program and warranty obligations. Detroit-based GM had global liabilities of $176.4 billion as of Dec. 31, 2008.
Pontiac models will be scrapped, along with as many as 16 factories, some of which may involve massive cleanup costs. GM must also try to find buyers for its Hummer and Saturn units after not finding any takers so far.
Given the planned stakes, the new GM will be controlled by the U.S. government, with the Canadian government possibly owning a small share. A union health-care trust will own 17.5 percent and 10 percent will be given to the old GM to hand to creditors to resolve claims, according to GM’s filing.
The Treasury plans to allocate that 10 percent stake to bondholders, plus offer warrants to buy an additional 15 percent of equity, provided a “satisfactory” number of holders agree to go along with GM’s restructuring program, according to the filing. Bondholders may get nothing if they don’t satisfy the Treasury by 5 p.m. New York time tomorrow, GM said...
GM’s current stockholders would get no recovery from the new-entity asset sale, according to the filing, a change from an earlier plan to give them 1 percent of the new company.