May 17 (Reuters) - Bidders in a U.S. court auction of
shares that will decide the ownership of oil refiner Citgo
Petroleum can be required to say if their binding
offers cover claims by Venezuela bondholders in a separate court
action, a U.S. District Court judge ruled on Friday.
The decision lets bidders seeking to place multi-billion
dollar offers for a Citgo parent's shares to be asked if they
plan to set aside cash or if their bids will accommodate
Venezuela 2020 note holders seeking payment of $3 billion in
principal debt.
The ruling by US Judge Leonard Stark came after Venezuela
objected to a court officer's revised bidding instructions that
Venezuela and some creditors called unclear. Stark rejected the
motion to delay the auction, saying the court officer could make
changes to maximize the value of bids received.