WRAPUP 1-Argentine debt talks go down to the wire to avert default
* Settlement talks in New York expected to resume
* Argentine bond prices surge in anticipation of deal
* Tuesday's talks were first between hedge funds and Argentina
By Richard Lough, Eliana Raszewski and Daniel Bases
BUENOS AIRES/NEW YORK, July 30 (Reuters) - Argentina was in a race against time on Wednesday to cut a deal by the end of the day with holdout investors suing it or win a reprieve from a U.S. court, as a surge in the country's bond prices fed optimism that an agreement was possible.
Attorneys for holdout hedge funds awarded $1.33 billion plus interest by a U.S. court arrived for talks at the New York offices of court-appointed mediator Daniel Pollack on Wednesday morning, with hours to go Argentina faces its second default in 12 years. Pollack arrived shortly thereafter.
Argentine Economy Minister Axel Kicillof arrived shortly after 11 a.m. EDT (1500 GMT) for the talks.
The holdout funds are demanding demand full repayment on bonds they bought at a discounted rate after the country last defaulted in 2002.
The price of the South American country's bonds surged 15 percent on Wednesday to levels not seen in 3-1/2 years, a sign to some investors that a deal was attainable before another damaging default. Continuación...