HOUSTON (Reuters) - Hedge fund Elliott Investment Management on Monday pressed a court not to hold up its bid for Citgo Petroleum, saying the Venezuela-owned oil refiner's assets "are deteriorating in value" and creditors will not get a better offer from others.

The comments came in a court filing after creditors last week described an up to $7.3 billion conditional bid placed before the court by Elliott's wholly-owned Amber Energy as inadequate and likely to be rejected.

Elliott's wholly-owned Amber Energy repeated its threat to walk away if the court "does not address threshold issues," referring to its desire to hold back more than $2 billion of its offer as a set-aside were Venezuela bondholders to prevail in a separate lawsuit. And it wants the court to bar other lawsuits from seeking control over the same assets.

Citgo operates three U.S. refineries, 38 terminals, six pipelines and supplies fuel to 4,200 independent retailers. The Houston-based oil refiner is the centerpiece in a U.S. District Court in Delaware's auction seeking to satisfy $21 billion in claims against Venezuela for defaults and expropriations.

In addition to Eliott's backing, Amber wrote it has obtained a debt commitment letter from Barclays ( JJCTF ) and Citigroup's ( C/PN ) Citibank demonstrating its ability to finance the purchase. It also has retained an eight person refining management team ready to take over Citgo operations.

The court filing did not address other issues raised by creditors, including an undisclosed breakup fee should the deal not conclude, and opposition to other bidders accessing Citgo financial data until after the court decides on its breakup fee.

A spokesperson declined to respond to those issues.

Amber wrote its proposal is "the best and only realistic pathway for the largest number of creditors" to receive payment despite creditors calling its terms as unlikely to provide them with auction proceeds "for years - if ever."