By Shawn Langlois

SAN FRANCISCO (Dow Jones) -- General Motors Corp. has toiled over the past couple months to slash its workforce, curb employee benefits and highlight a rosier, fuel-efficient future -- all in attempt to remain viable and keep the money flowing in from Washington.

Next week, GM (GM), along with struggling rival Chrysler LLC, will see if its federal benefactor approves so far. Anything short of a thumbs-up and the promise of more funding could lead to an even more uncertain future for Detroit's ailing industry.

GM spokesman Greg Martin said the plan will be submitted to the Treasury Department on Tuesday afternoon with a press conference to follow. He declined to comment on the specific issues that remain to be hashed out, other than to say GM is on track.

"Our sleeves are rolled up and we're working on it," Martin said, "We're confident that we'll deliver a good, solid plan that shows a roadmap to viability."

Still, the flexibility of bondholders and the United Auto Workers continues to be seen as a major sticking point. According to J.P. Morgan analyst Himanshu Patel, a bankruptcy filing could be the eventual outcome if GM fails to hammer out the necessary concessions.

In fact, GM bondholders are threatening to push the company into bankruptcy if they don't get more money in exchange for forgiving debt, the Detroit News reported Thursday.

GM is working on a debt exchange that would slash its unsecured debt by two-thirds to $9.2 billion. The company is seeking to halve its $62 billion in total debt under the terms of the $13.4-billion loan package, with bondholders required to accept about 30 cents on the dollar.

But creditors are looking for 50 cents on the dollar, which they say mirrors the value of concessions being negotiated with the United Auto Workers, the Detroit News said.

In the meantime, the pace of the industry deterioration has not slowed. GM's January U.S. vehicle sales plunged 49% to headline the worst sales month in decades. Chrysler's results were even worse, down 55% as none of the major automakers were spared.

GM's stock price has shown no sign of a rebound, either, having lost 19% since the start of 2009. The spiraling Dow component has shed more than 90% of its value in the past year.

On the jobs front, the carnage is piling up. GM is currently offering buyouts to its entire hourly workforce and also said earlier this week that it will cut 10,000 salaried positions.

Bankruptcy is no foregone conclusion, however, considering the Obama administration's apparent willingness to keep the ailing industry on life support and to avoid putting further pressure on an economy that has already seen the loss of almost 3 million jobs.

"I honestly don't think bankruptcy is on the table any more," auto industry analyst Erich Merkle said. "In the end, if the White House allows GM to go into bankruptcy, the government could eventually end up owning the whole company. We don't want that."

He added that there is still a lot of work to be done to get creditors and the union on board, and that "we're not going to see concessions fall from the sky."

"This is a game of chicken and my gut says we're going right down to the wire," Merkle said, alluding to March 31 -- the final deadline for GM and Chrysler to prove their painful restructuring and cost-cutting measures have put them on the road to viability.