General Growth Properties, which filed the biggest real-estate bankruptcy in US history, won court approval of a $400m loan from a group led by Farallon Capital Management and the right to use cash on hand to fund its operations.

The company received approval to use the so-called cash collateral and borrow on the loan over objections from lenders on some properties. The lenders had argued many of General Growth’s malls shouldn’t be in bankruptcy at all and the parent company shouldn’t have access to those properties’ cash flow.

US Bankruptcy Judge Allan Gropper overruled the objections yesterday, saying the lenders’ rights were protected and General Growth should have access to cash collected at its subsidiaries.