A bankruptcy judge said Wednesday that Lehman Brothers Holdings Inc. can provide $950 million in financing to its struggling bank unit, the latest attempt to prop up the bank and prevent its failure.
The ruling marks another bid by Lehman to go to court to protect its stake in the Delaware bank, Aurora Bank FSB, and keep federal banking regulators from seizing it, a move Lehman said could cost it more than $3 billion in losses.
Judge James Peck of the U.S. Bankruptcy Court in Manhattan, who is overseeing Lehman's bankruptcy case, approved the financing after hedge fund Elliott Management withdrew an objection to the proposal.
