*

Auction's winner must be recommended by July 2

*

Once confirmed, winner will need approval by the US

Treasury

*

Judge Stark still on course to finalize proceedings by

late Q3

(Adds context in paragraphs 2-4, details and quote in

paragraphs 6-7)

By Marianna Parraga

HOUSTON, June 11 (Reuters) - A U.S. judge in Delaware

has extended the schedule for a court-organized auction of

shares in the parent of Venezuela-owned refiner Citgo Petroleum,

moving the sales process's final hearing to August 18, according

to a filing on Wednesday.

The eight-year court case, aimed at compensating creditors

for debt defaults and asset expropriations in Venezuela, has

endured multiple delays. A first bidding round last year failed

to satisfy most of the companies expecting to cash proceeds.

Houston-based Citgo, ultimately owned by Venezuela's state oil

company PDVSA, is the seventh-largest U.S. refiner.

Earlier this year, a $3.7-billion offer by Contrarian Funds'

affiliate Red Tree Investments was selected by the court as a

starting bid in the second bidding round. The offer includes an

agreement to pay holders of a Venezuelan defaulted bond.

Red Tree and rival bidders have until June 18 to submit

improved offers. A court officer overseeing the auction last

month said new bidders were expected to emerge.

The new calendar, approved after lawyers representing

Venezuela requested more time for due diligence and to secure

robust bids, sets July 2 as the deadline for a judge to

recommend the auction's winner, with a period for submitting

objections through July 9.

Judge Leonard Stark is trying to avoid long delays in the

last part of the sales process by moving deadlines only at

bidders' request. Once confirmed, the auction's winner will need

approval by the U.S. Treasury Department, which has been

protecting Citgo from creditors since 2019.

"While heightened investor engagement may marginally delay

the auction hearing, Judge Stark remains on course to finalize

proceedings by late Q3 2025," said consultancy Aurora Macro

Strategies in a report last week.