Argentina says it will make another effort to reach a deal with a group of U.S. creditors to avoid a possible default on its debt, the second in 13 years.

The Argentine government is sending a delegation to New York to meet Tuesday with a court-appointed mediator who is handling the dispute between Argentina and a group of New York hedge funds.

Those hedge funds rejected Argentina's restructuring offers after its record $100 billion default in 2001, and are demanding payment in full.  Other creditors did accept Argentina's restructured debt payments.

A U.S. federal judge will not allow Argentina to make a scheduled payment to those bond holders unless it pays the hedge fund creditors as well.  

The meeting Tuesday with mediator Daniel Pollack comes one day before Argentina's deadline to make its payments and avoid another default.  Pollack says the country would be better served by meeting with the holdout creditors themselves.

Experts say Argentina is in a bind because it cannot pay some bondholders different amounts without getting sued.