As China Evergrande Group seeks to restructure, it has said it will vigorously fight a winding up lawsuit that has been filed against it.

A winding up petition involves a claimant seeking a court’s order forcing a business to wrap up its affairs and disburse its assets to creditors. Once notice is received of such a suit, the company cannot be placed in a CVL, Creditors Voluntary Liquidation, and neither the company nor its assets can be sold. Any such actions would be criminal offences, pending the court’s examination of the matter.

Top Shine Global Ltd in Hong Kong, an investment holding firm, filed the lawsuit against Evergrande, for not fulfilling a debt of roughly US $109.91 million.

Evergrande presently has over $300 million in liabilities, and has already defaulted on its offshore debt a year ago. A restructuring plan was expected to be complete by the end of July.

In a Tuesday stock exchange filing, it said any disbursal of property, including shares or assets, would be void without a validation order issued by the court. As a result, any transfers of shares by shareholders or potential investors on or after June 24, the date the petition was filed, would be voided.

Since March 21st, trading of Evergrande shares has been suspended because the firm had been unable to provide timely financial reports and because there was an issue with banks seizing 13.4 billion yuan in deposits which were already pledged as security for third-party guarantees.

Through an executive, Top Shine has told media that it filed the petition because Evergrande had made an agreement to repurchase shares it bought in Fangchebao (FCB), Evergrande’s online real estate and automobile marketplace.

Top Shine bought 0.46% of FCB for roughly US $100 million last year in March, with an agreement with Evergrande that should an IPO not happen by April 8th, 2022, Evergrande would repurchase the stock.

Top Shine now wants Evergrande’s agreement honored under court order.