UPDATE 1-Judge approves $500 mln bankruptcy loan for Lear

*Gets approval of $500 mln debtor-in-possession loan

*Loan provided by lender group led by JPMorgan

NEW YORK, July 30 - A U.S. bankruptcy judge on Thursday said auto parts maker Lear Corp could access $500 million in loans to keep the company operating during the bankruptcy process.

At a hearing in U.S. bankruptcy court in Manhattan, Judge Allan Gropper approved the debtor-in-possession loan for the company, which will be provided by a group of lenders led by JPMorgan Chase&Co.

During the hearing, a lawyer for Lear had argued there would be "business risks" to delaying the company's loan, despite some recent moves by a competing lender group that said it was trying to come up with an alternate bankruptcy loan for the company.

Judge Gropper approved the financing deal, over an objection from Lear's creditors' committee, which had sought more time to evaluate the two loan proposals side-by-side.

Lear, which makes seating and electronic components for cars, filed for bankruptcy July 7, buckling under the weight of $3.6 billion in debt.

The company was among a string of auto suppliers that have sought bankruptcy protection in the past few months, as the auto industry struggles with softer demand amid the recession.

Lear said when it filed for bankruptcy that it planned to submit a restructuring plan within 60 days.

The case is In re: Lear Corporation, U.S. Bankruptcy Court, Southern District of New York, No. 09-14326.