A judge ruled that LTV could pay its suppliers.

The giant steelmaker, which declared bankruptcy last week, said in bankruptcy court that its debt relating to government contracts was about $129 million, of which $124 million was owed to suppliers. LTV’s aerospace and defense unit was the company’s only profitable division, LTV attorney Herbert Edelman said. Defense contracts made up about 86% of the unit’s $2.3 billion in sales, he added. Maintaining the division’s financial integrity was essential for LTV’s continued operation, Edelman said in arguing for permission to pay the division’s suppliers.