General Motors Corp. said Monday it would cut its factory workforce by 21,000 by end of 2010 and seek to do a debt for equity swap with government for more than half of its government debt as part of its restructuring plan.

The struggling automaker also said it will phase out the Pontiac brand and offer 225 shares of common stock for every $1,000 in notes held by bondholders.

The securities exchange commission announced on Monday in a statement.

The restructuring is vital for the government to avoid bankruptcy protection avoid bankruptcy protection and qualify for more government aid and.

 It currently owes the government more than $15.4 billion in loans.

GM said in a press release that it also will ask the government to take 50 percent of its common stock in exchange for canceling half the government loans to the company as of June 1.

GM currently owes more than $27 billion, if the debt for equity swap is successful then this debt would be cleared.