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The U.S. government won't penalize General Motors Corp. (GM) for failing to meet a Feb. 17 deadline to reach agreements with shareholders and the United Auto Workers to reduce billions in debt, according to a federal regulatory filing on Monday.

The deadline was a condition attached to $13.4 billion in emergency loans GM received since December. The auto maker was supposed to have term sheets signed by the union and a group representing bondholders that would have eliminated nearly $30 billion in debt.

But GM said it needed more time to bargain after marathon negotiations failed to produce deals with a bondholders' committee or the union.

Chrysler LLC, which received a $4 billion loan, was subject to the same terms as GM and also failed to reach deals with the UAW or debtors, although talks still continue. A spokesperson from Chrysler was not immediately available for comment on Monday.

GM and Chrysler last week both asked for more money - as much as $21.6 billion - to survive the economic downturn. The companies also presented more extensive restructuring plans that include more job cuts, factory closings and eliminating nameplates and dealers.

Monday's filing did not specify a new deadline for GM. However, both auto makers are required to ratify new cost-cutting deals with the union and have debt swaps underway with bondholders by March 31. The government could demand the money back if the companies fail to meet that deadline.

At GM, negotiations have stalled as the UAW and bondholders demand more financial sacrifice from other parties. GM had said a lack of direction from the U.S. Treasury also contributed to the slow pace of negotiations.

GM and Chrysler are looking to use more equity and less cash to fund billions in retiree healthcare obligations. They are looking to bondholders to swap at least two-thirds of their debt for equity.

Ford Motor Co. (F), which hasn't asked for aid, on Monday struck a deal with the UAW to reduce the auto makers' retiree health care trust expense. Ford now has the option to use equity and cash to support the trust fund.

The UAW agreed to money-saving concessions with all three auto makers. Members still must vote on changes to the contract.

-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com.