Lehman Brothers was given permission by a federal judge to begin the final phase of the biggest bankruptcy in US history, as the defunct securities firm seeks to distribute $65 billion in assets.

Liquidating the estate may take several more years. Lehman, once the fourth-largest investment bank, collapsed in September 2008 with assets of $639 billion.

US Bankruptcy Judge James Peck approved the plan after the objection of one final creditor was overcome. The plan is backed by creditors holding about $450 billion in claims.

Lehman, which was run by CEO Richard Fuld when its collapse helped bring on the worst economic slump since the Great Depression, settled a fight with creditors in a June payment plan that allotted more money to derivatives claimants including Goldman Sachs and less to bondholders such as Paulson & Co.