General Motors Corp. (GM) outlined a revamped survival plan Monday that would leave the U.S. government as its majority owner in return for an extra $11.6 billion in federal aid.

The plan includes an ambitious debt-swap offer that moves the auto maker closer to restructuring through the bankruptcy court.

GM plans to cut an additional staff, halve its dealer network and kill its Pontiac brand in an effort to secure government support after its existing proposal was rejected in March.

The company launched an offer for $27 billion in unsecured public notes that it said would keep it out of court. But Chief Executive Fritz Henderson said sufficient acceptance of the offer is far from certain and a Chapter 11 filing is now "more likely."

GM is surviving on U.S. federal loans and needs to secure deals with employees, creditors and the U.S. auto task force by a June 1 deadline.

The new plan envisages the U.S. Treasury extending an additional $11.6 billion to GM, in addition to $15.4 billion in existing loans.

The government will forgive half the debt in exchange for equity in a restructured GM. The auto maker expects to get the additional aid.

Henderson said earlier this month the White House had demanded "faster, deeper" cost cutting. Under the latest plan, the company will idle one additional factory and look to eliminate 500 additional dealers.

The hourly job cuts will reduce GM's U.S. work force by 7,000 more workers than outlined in the February viability plan, from 61,000 to 40,000 by 2010. Salaried staff are also expected to be cut further.

The company said it will focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - as it looks to make fewer different models and focus on product development programs. Production of the Pontiac brand will end by next year.

It will also restructure its U.S. dealer organization, reducing its U.S. dealer count by more than 40% by the end of next year, a reduction of 500 more dealers four years sooner than its earlier viability plan.

Under the exchange program, the company is offering to exchange 225 common shares for each $1,000 principal amount of outstanding notes. The stock closed Friday at $1.69 a share and shares were recently up 11% at $1.87 in premarket trading.

Monday's bond exchange filing represents an important step in GM's effort to restructure its company, President Barack Obama's automotive task force said in a statement.

The exchange will commence only if 90% of bondholders agree to the terms. Under the plan, if GM fails to get adequate participation, it will file for bankruptcy protection.

The company added that negotiations regarding contract changes with the United Auto Workers union are still ongoing.

-By Sharon Terlep, Dow Jones Newswires; 248-204-55329; sharon.terlep@dowjones.com