Wow, this is pretty big. It’s possible that the world’s messiest bankruptcy is going to go a little smoother.

The AP reports GM says bondholders support sweetened offer:

General Motors Corp. says a committee of bondholders has agreed to a sweetened deal to erase some of the automaker’s debt in exchange for company stock.

The company said in a statement Thursday that it offered bondholders 10 percent of the company’s stock with warrants to buy up to 15 percent if they agree to support selling the company’s assets to a new company under bankruptcy court protection.

What isn’t mentioned by the AP is that this offer would still have to be approved by a majority (possibly 90% like the previous deal, but the announcement didn’t say) of bondholders to actually go through. It isn’t clear how many more bondholders outside of this group are required. Also, I reiterate that this is encouraging news from the bankruptcy-goes-smoother view, it doesn’t help GM avoid bankruptcy.