Bankrupt Aloha Airlines has won court approval to auction intellectual property for at least $525,000 to bidders including private-equity firm Yucaipa Cos.

The Dec. 2 auction, which includes dozens of trademarks, nine Internet domain names and three designs for painting aircraft exteriors, was approved yesterday by U.S. Bankruptcy Judge Lloyd King.

Yucaipa, the so-called stalking-horse bidder led by billionaire investor Ron Burkle, is Aloha's majority investor and second-lien creditor. The Los Angeles-based firm agreed to pay $25,000 cash and reduce its claims in the case by $500,000.

Competing bids in $50,000 increments must be received by next Wednesday, according to the ruling. King scheduled a Dec. 3 hearing to consider approval of the auction results. The court order didn't reference any known competing bidders.

King in June approved Yucaipa's offer to buy Aloha's stake in a lawsuit against Mesa Air Group Inc., parent of interisland carrier go!, for a $10 million credit bid. The noncash offer reduced the amount that Yucaipa is owed by Aloha. The 2007 case accused Phoenix-based Mesa of misusing Aloha's confidential information and using predatory pricing.

Aloha stopped passenger flights 11 days after its March 20 Chapter 11 filing. The reorganization case was later converted to Chapter 7 liquidation.