Argentina is placing an alternative payment plan to an appeals court in the U.S. in a bid to resolve litigation with creditors that hold defaulted bonds and are demanding payment of $1.33 billion.

The Latin American state made proposal in a filing with the U.S. Circuit Court of Appeals in New York to make payment to creditors who did not particulate in two restructurings through a choice of bonds equivalent to the debt value during the country's default in 2002.

In October last year, a trial judge's ruling was upheld by the 2^nd Circuit by finding Argentina's violation of a so-called pari passu clause in its bond documents that required it to make equal treatment of its creditors.