Excerpt:

OAKLAND, Calif. -- A U.S. Bankruptcy Court judge has approved an agreement that calls for the failed Lehman Brothers financial firm to pay $3.7 million to abate health and safety hazards at the site of the former Oak Knoll Naval hospital in the East Oakland hills.

SunCal Companies, which is based in Orange County, had planned to tear down the hospital site, clean it up and build 960 homes, a shopping area and a 50-acre park. Lehman Brothers was providing financial backing for the project.

But the project went south when the economy faltered and Lehman Brothers collapsed and the division of SunCal that was working on it declared bankruptcy.