Brilliance China will fight the legal challenge of founder and ex-chairman Yang Rong by requesting the Supreme Court of Bermuda to discharge an order blocking sale of the company's shares. 'We will file the [legal] papers to the Bermuda court in the next two days and we are confident that the court will strike out the writ filed by Broadsino Finance this week or as soon as possible,' said Elsie Chan, vice-president of corporate finance for Brilliance China. Broadsino, controlled by Mr Yang, obtained the Bermuda court order on January 21 restraining Brilliance China from registering share sales or transfers. Last month, the Chinese Financial Education Development Foundation agreed to sell a 39.45 per cent stake in the minibus and saloon maker to Liaoning government-owned company Huachen Automotive Group at a 93.1 per cent discount, despite protests from Mr Yang. Brilliance China shares yesterday fell 4.25 per cent to HK$1.80 after it resumed trading. The shares were suspended on Friday. Wang Hai, a partner at Beijing Forever Law Firm, which represents Broadsino, yesterday said the 39.45 per cent stake in question belonged to Broadsino. In a meeting with analysts yesterday, Mr Wang said Brilliance China was a Bermuda incorporated company and therefore the court order was valid. If Brilliance China or its management did not respond to the court order, the court could vote in favour of Broadsino, he said. 'If that happens, and if Brilliance China ignores the court decision, the court will eventually liquidate the company,' he said. However, Ms Chan said this would not happen as the company would reply to the Bermuda court within 14 days. 'The writ filed by Broadsino is without merit and the share sale will proceed as scheduled,' she said. The legal challenge is the latest chapter in the dispute over Brilliance China between Liaoning government and Mr Yang, who fled to the United States last May, citing fears for his personal safety. Last month, a group of Brilliance China Automotive's minority shareholders demanded an investigation into the company, alleging it had made false statements and sold its controlling stake at an inappropriate price. Tai Fook Research analyst Hu Wenwei said the legal challenge clouded the company's outlook. She expected investors would take this as an excuse to take profits as the stock has risen to an expensive level. The stock has surged about 90 per cent in the past three months.