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Texaco won permission to pay most of its workers.

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The bankruptcy judge in Texaco’s Chapter 11 case said he allowed the company to pay more than 2,000 employees most directly affected by the filing. At least two Houston banks had temporarily refused to honor payroll checks but were later informed of the order, Texaco said. Pennzoil, the company’s largest creditor, said it was considering whether to challenge Texaco’s bankruptcy petition and whether to seek a seat on its creditors’ committee. A Pennzoil spokesman said he was “not aware” of any overtures by Texaco on Tuesday to settle the two companies’ record $11-billion court case, which is at the root of the bankruptcy petition.

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