Cooper Industries said yesterday a federal judge has approved a reorganisation plan to help Federal-Mogul Corporation emerge from bankruptcy.

The ruling allows for Cooper and Federal-Mogul to begin a Plan B settlement, while a Plan A settlement may require further deliberations.

Federal-Mogul filed for Chapter 11 protection in October 2001, under the weight of asbestos liabilities. The two companies have wrangled over asbestos disease claims related to a brake business each of the companies once owned.