Up to 300 jobs have been saved at a firm that produces leather for the footwear and fashion accessories industry after a bankruptcy court approved Irving Tanning Co's reorganisation plan.

The Hartland, Maine-based company filed for Chapter 11 bankruptcy protection 17 months ago amid soaring cattle hide prices and the demise of US shoe making companies.

Its reorganisation plan will see its debt cut by more than $30m through agreements with suppliers and lenders and keep 300 employees as work and profits picks up amid falling cattle hide prices.