Gold Reserve-led group raises bid for Citgo's parent

June 18 (Reuters) - Gold Reserve's GRZ.V subsidiary Dalinar Energy Corporation on Wednesday submitted an improved bid for the parent of Venezuela-owned refiner Citgo Petroleum as part of a U.S. court-organized auction, the mining company said in a release.

A federal judge in Delaware set June 18 as the deadline for companies to submit improved offers to challenge a $3.7 billion bid for Citgo's parent PDV Holding from Contrarian Funds' affiliate Red Tree Investments, which was selected earlier this year as the starting bid in the auction.

The court is trying to secure a deal to satisfy companies lining up to be paid up to $19 billion in compensation for debt defaults and expropriations in Venezuela.

The auction's winner is expected to be recommended by July 2 by a court officer overseeing the sale. Other consortia including affiliates of trading house Vitol and hedge fund Elliott Investment Management also were considering bids, sources close to the preparations said.

Dalinar Energy's revised bid, which relies on a combination of equity and debt financing, is supported by a consortium including Rusoro Mining RML.V and two units of U.S. conglomerate Koch, Gold Reserve said.

"The revised bid, if approved by the Court, and consummated, would satisfy, in cash or non-cash consideration, the attached judgments of all waterfall creditors senior to Gold Reserve. The revised bid also would satisfy a substantial percentage of Gold Reserve's attached judgment," the company said in the release.