ORANGE COUNTY

Bankruptcy Judge OKs OP Sunwear Sale: A U.S. Bankruptcy Court judge in Santa Ana on Friday approved the proposed sale of Ocean Pacific Sunwear Ltd. to a San Francisco investment group. Judge James N. Barr ruled that the sale of the Irvine-based surf wear giant could go ahead with the $21-million sale to Berkeley International Capital Corp., a move that will lift the company out of bankruptcy, said OP Senior Executive Vice President Mike Balmages. No opposition was received to the deal from either of OP’s secured creditors, Wells Fargo Bank and Republic Factors Corp., both of Los Angeles. Balmages said that creditors are supportive of the arrangement. But the sale is still contingent on whether OP can settle a lawsuit brought by the company’s largest stake-holder, Elaine Ornitz. Ornitz, who owns about 30% of OP, alleges in the 2-year-old suit that the company should have been sold earlier, when it was worth more. “Now that the deal has been approved by the court, we’re going to engage in negotiations with Elaine Ornitz’s representatives,” Balmages said. Ornitz’s lawyers could not be reached for comment.