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US Judge extends the topping period for Citgo Parent's auction to June 2

According to a Tuesday filing, a U.S. Federal Judge has extended until at least June 2, the deadline for rival bidders to enter bids during a court-organized sale of shares of Citgo Petroleum's parent company. Citgo Petroleum is owned by Venezuela.

Last month, Delaware Judge Leonard Stark accepted a $3.7billion offer from Contrarian Funds affiliate Red Tree Investments, as the opening bid for the auction of shares. The auction was intended to compensate 15 creditors who were affected by debt defaults and expropriations.

Red Tree and other rival consortia were given until the 28th of May to submit their submissions

Competing

Last week, lawyers for Venezuela requested that parties take more time to review parallel lawsuits before other U.S. courts which could have an impact on the price or conditions of certain bids.

According to a proposed new calendar by some creditors the final hearing of the auction would still take place in July, after a "special master" appointed by the court overseeing the process of sale recommends a winning bidder next month.

Several Venezuelan creditors who were involved in the case of Delaware, which lasted eight years, have filed lawsuits to recover the same assets. Last week, a New York court dismissed arguments from one of the creditors groups.

The Venezuelan lawyers requested the extension. They wrote: "This is an important development in the sales process." The Venezuela parties respectfully request an extension to the topping period in order to allow bidders or potential bidders to account for what the special master called a "cloud of uncertainty" that hung over bidding.

In court motions, some creditors supported the extension. (Reporting and editing by Nick Zieminski, David Gregorio and Marianna Pararaga)

(source: Reuters)