UPDATE 1-Bankruptcy judge approves Tronox bidding plan

* Judge approves bidding procedures for Tronox

* Judge approves break-up fee for Huntsman

NEW YORK, Sept 16 (Reuters) - A U.S. bankruptcy judge on Wednesday approved bidding procedures for bankrupt chemicals maker Tronox Inc TRXAQ.PK including a break-up fee if rival Huntsman Corp (HUN.N) is not able to buy part of the company as it has proposed.

Huntsman has offered to buy some Tronox assets for $415 million with a so-called stalking horse bid. A stalking horse bid, reached in agreement with the company being bought, sets a floor under the value of the assets against which all other prospective bids will be measured.

Judge Allen Gropper said in a Manhattan bankruptcy court that he approved a break-up fee for Huntsman if Tronox decides to abandon the sale process, saying that Huntsman is taking a great financial risk.

Gropper did not approve a request that Huntsman receive a break-up fee if another bidder made a bid, even if the other bid did not result in a transaction.

Tronox filed for bankruptcy protection in January.

The Tronox bankruptcy case is In re: Tronox Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-10156.

(Reporting by Chelsea Emery)