Argentina filed a suit against the US at the International Court of Justice (ICJ), alleging that the ruling made by the 2nd Circuit Court in favour of holdout creditors violates its sovereignty.
The Hague-based court is a United Nations body and can only hear the case if the US government agrees to accept its jurisdiction.
"The Argentine Republic contends that the United States of America has committed violations of Argentine sovereignty and immunities and other related violations as a result of judicial decisions adopted by US tribunals concerning the restructuring of the Argentine public debt," the ICJ said in a statement.
Argentina has been engaged in a long legal battle with hedge funds led by Elliott Management and Aurelius, which refused to take part in the country's debt restructuring. About 92% of the country's creditors agreed to swap debts and accept less money.
In a major blow to the government, the US court earlier gave a ruling that bars Argentina from paying the holders of its restructured debt unless it pays the hedge funds. District judge Thomas Griesa has also blocked Argentina's coupon payment to restructured bondholders through Bank of New York Mellon.
The country's continuous attempt to reach a settlement with the so-called vulture funds failed, and it fell into its second default in 13 years.
Argentina earlier ordered Bank of New York Mellon – the intermediary between the country and bondholders – to make the payouts despite Griesa's order. However, the judge ordered the bank to hold on to the money.
Meanwhile, a number of international banks are looking to find investors to buy the disputed debt from holdout funds and resolve the lawsuit, Bloomberg reported.
The banks include Citigroup, JPMorgan Chase & Co, HSBC Holdings Plc and Deutsche Bank AG, who are the four biggest underwriters of Latin American bonds in international markets in 2014, according to data compiled by Bloomberg.