Hedge fund Elliott Management will back a revised settlement for General Motors Corp. (GM) bondholders amid a broader push to win backing from large institutions ahead of a Saturday deadline.

The $13 billion distressed debt specialist is not a member of the ad hoc group of GM debtholders who reversed prior opposition and pledged their estimated 20% of outstanding notes in favor of a deal.

The ad hoc committee has been canvassing other large creditors rather than GM's large retail creditor base, according to a person familiar with the process.

"Based on all the facts and circumstances Elliott Management has chosen to support the current GM proposal to bondholders," an Elliott spokesperson said when contacted about their intentions.

Elliott also served on the Chrysler Secured Creditors Committee and voted for the government's plan before that company was put into bankruptcy.

GM bondholders had rejected an offer of 10% in a "new GM" for their $27.2 billion in debt. The terms were sweetened with some warrants Thursday, alongside a stark warning that the return could be "substantially reduced or eliminated" if they don't accept by 5:00 p.m. EDT on Saturday.

The company had sought backing from 90% of debtholders for its original exchange, but hasn't defined an acceptance level for Saturday's deadline.

Winning creditor support is expected to make GM's trip through the bankruptcy court less contentious. It also won support Friday for union contract amendments to cut its cost base and improve flexibility.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com