WRAPUP 1-GM trundles toward bankruptcy, but questions remain

* GM bondholders approve debt-for-equity exchange

* Chapter 11 filing expected Monday morning in New York

* Questions remain over GM's future

* Auto sales for May seen bleak

By Nick Carey and Kevin Krolicki

DETROIT, May 31 (Reuters) - General Motors Corp GM.N and the U.S. government finalized plans on Sunday for the battered company to reorganize, setting the stage for America's largest-ever industrial bankruptcy and heralding a new and uncertain era for the No. 1 U.S. automaker.

GM will file for Chapter 11 bankruptcy protection on Monday at the U.S. Bankruptcy Court in the Southern District of New York before markets open, according to sources with direct knowledge of the preparations. [ID:nN31395352]

Al Koch, a managing director at advisory firm AlixPartners LLP, will be appointed Chief Restructuring Officer at GM, a source familiar with the matter said.

U.S. President Barack Obama is expected to outline GM's next steps on Monday as the federal government prepares to take a more than 70 percent stake in the company in exchange for $60 billion in financing. Nearly half of that money has already been extended this year in emergency aid.