Lawyer: Argentina to negotiate with US hedge funds

By DEBORA REY | June 18, 2014 | 5:04 PM EDT

Argentina's Economy MInister Axel Kicillof talks to the media at a press conference to explain the recent U.S. Supreme Court's ruling on Argentina's bond default, in Buenos Aires, Argentina, Tuesday, June 17, 2014. The Argentine economy minister says the government is working on a debt swap that would make payments in Argentina to creditors who accepted previous debt restructurings. (AP Photo/Eduardo Di Baia)

NEW YORK (AP) — A lawyer says Argentina will negotiate with U.S. hedge funds that are owed $1.5 billion for defaulted bonds.

Attorney Carmine Boccuzzi (Bo-KEW-zee) said Wednesday in New York federal court that authorities for the Argentinian government will travel to New York next week.

Argentina is required to pay the funds for defaulted bonds by the end of June.

Wednesday's hearing comes two days after the U.S. Supreme Court refused to intervene in the order.

Economy Minister Axel Kicillof (AHK'-sehl KIHS'-ee-lahf) said Tuesday that the government is "starting to take steps to begin a debt swap" to service the country's restructured debt in "Argentina and under Argentine law." A federal judge said the plan would violate his orders.

The dispute stems from Argentina's record $100 billion default on its national debt in 2001.