July 10 (Reuters) - Holders of a key bond defaulted by

Venezuela's state oil company PDVSA asked a New York judge on

Thursday to ensure they can claim compensation from proceeds

expected in an auction of shares in the parent of

Venezuela-owned U.S. refiner Citgo Petroleum.

The holders' case in New York about the validity of their

claim against Venezuela has not been resolved, but if they

secure an injunction in the meantime, they could ultimately

block the transfer of shares in Citgo's parent PDV Holding to

the auction's winner.

A $7.4 billion bid for PDV Holding submitted by a group led

by a unit of miner Gold Reserve ( GDRZF ) was recommended last

week as the auction's winner by a court officer overseeing the

bidding round in Delaware.

The court-organized auction aims to pay back Venezuela's

creditors after the South American country's debt defaults and

expropriations. But contrary to some competing offers, the Gold

Reserve ( GDRZF ) group's bid does not include an agreement to pay the

bondholders.

The holders are getting ready to move with an injunction if

the Gold Reserve ( GDRZF ) group's offer is ultimately approved in

Delaware under the proposed terms.

"We don't want to interfere with the sale," Christopher

Clark, who represents the holders, told Judge Katherine Polk

Failla from the Southern District of New York, in a court

hearing. "All we are trying to do is to protect our rights.

Delaware is not the proper forum for that."

Federal Judge Leonard Stark must decide whether to approve

the recommended bid in coming weeks. Stark had anticipated that

the bondholders' opposition to the Gold Reserve ( GDRZF ) group's proposed

transaction for Citgo's parent could lead to increased

litigation in the 8-year case, which saw a failed first bidding

round last year.

In late June, lawyers representing the holders told Polk

Failla they would seek relief, including through an injunction,

to preserve their status quo while the New York court decides on

their case. The hearing on Thursday was to explain the planned

injunction request.