Judge OKs Maxwell Communication Accord : Media: The agreement, aimed at restructuring the firm, must be approved by a U.S. bankruptcy court.

A judge Tuesday approved an agreement between U.S. and British bankruptcy court officials aimed at reorganizing one of the main companies in the Maxwell family’s crumbling media empire.

The proposal for Maxwell Communication Corp. also requires the approval of the U.S. bankruptcy court in New York, which is scheduled to hear the matter Friday.

The company, which includes Macmillan Inc. publishers, filed for bankruptcy protection last month. It is one of the principal Maxwell family holdings, crippled by debt and allegations of financial mismanagement disclosed after the mysterious death of Robert Maxwell in November.

Judge Leonard Hoffmann approved an agreement reached by Maxwell Communication’s British administrators--three Price Waterhouse accountants--and its U.S. examiner, Richard Gitlin.

The agreement gives administrators some freedom to manage the company, but asset sales and loans worth more than $47 million would need approval by the court-appointed examiner.

Gitlin plans to investigate the company’s financial condition and the feasibility of a reorganization, according to part of the order read in court.

Price Waterhouse officials and the lawyers declined to provide a copy of the draft proposal. Maxwell Communications declined comment.

The Financial Times reported that the plan included $47 million in new loans to tide the company over during reorganization, but no loans were mentioned in court.

On Monday, court-appointed administrators agreed to fund the European for another month while seeking a buyer for the money-losing weekly newspaper.

The reprieve came after the Maxwell-controlled Mirror Group Newspapers sold its stake in Canada’s largest printing company for $95 million.

Officials are seeking more than $1.2 billion that Robert Maxwell allegedly siphoned off from his companies and pension funds to prop up Maxwell Communication Corp., which has filed for bankruptcy protection.

Maxwell’s body was found off the Canary Islands on Nov. 5, and an autopsy determined that he probably died of a heart attack. But some insurance investigators reportedly believe that he committed suicide.

The European, an English-language weekly, shut down temporarily but resumed publishing in hopes of finding a buyer.

A spokesman for the court-appointed overseers of the Maxwell empire said several parties are discussing the purchase of the European, launched in May, 1990, to capitalize on efforts to unify Europe economically.

Mirror Group, 51% controlled by the Maxwell family, said it has sold its 25.8% share in Quebecor Printing Inc. back to the company.

Proceeds from the sale will be used to reduce debt, estimated at $561 million.

Court administrators also are looking for a buyer for Mirror Group, whose flagship Daily Mirror is Britain’s second-largest daily.

Pearson, which publishes the Financial Times, and Mirror Group management are interested in buying the group.

Trading in Mirror Group and Maxwell Communication’s shares has been suspended since Dec. 2.

In December, Kevin Maxwell resigned as publisher and chairman of the Daily News in New York.