Gift cards at a Borders bookstore in Washington. (Nicholas Kamm/AFP/Getty Images)

A judge late Wednesday granted Borders Group approval on an interim basis to use $400 million of the $505 million in financing it has been offered to pay its vendors back and keep its business going, including honoring its loyalty program and gift cards.

The decision is the start of a lengthy and difficult process for Borders, which filed for bankruptcy protection on Wednesday. The No. 2 U.S. bookseller is attempting to successfully reorganize so it can emerge from bankruptcy protection a smaller and profitable company.

Borders is accepting bids in an auction for companies to run its store closings and clearance sales. Get the full story »