(Bloomberg) -- Grifols SA sought to dispel investors’ concerns over the completion of a 12.5 billion yuan ($1.7 billion) deal in China, as it seeks to recover from a short seller attack.

“In light of the concerns brought forward by the markets” regarding the sale of 20% of Shanghai RAAS, Grifols has been in touch with the buyer, Haier Group Corporation, Grifols said in a regulatory filing Sunday. Following this contact, the Barcelona—based firm “wants to inform that the Vice-Chairperson of Haier Group Corporation has textually declared the following: we continue to work to close the deal as originally planned.”

Grifols did not publish the name of the Haier vice-chairperson. 

Grifols, a Spanish producer of pharmaceutical products derived from blood, has been reeling since short seller Gotham City Research released a report Jan. 9 accusing it of deceptive accounting, sparking a record selloff in its shares. Management efforts to assuage investors’ concerns did little to revive the stock, which plummeted 36% through the end of the week, wiping €3.3 billion ($3.6 billion) off the company’s market value.

Proceeds from the Shanghai Raas stake sale are fully earmarked to pay down debt. One of the issues raised in Gotham’s report was Grifols leverage level, which the short seller says is understated by the company. The deal is expected to close during the first half of the year, according to Sunday’s filing. 

The funds from the sale will be used to repay two bonds that mature in 2025.

Since Gotham published its report, Grifols released two regulatory filings rebuking it aside from the one on Sunday. Management also held a call Jan. 11 in which it only accepted questions from sell-side analysts. 

In the call, Chief Executive Officer Thomas Glanzmann accused Gotham City of “re-purposing financial information” that was already public and audited and to act out of “pure self-interest and financial gain.” 

In a seperate statement Sunday, Grifols said that both parties were contractually obliged to respect the agreement, and that a refusal by either party to close the transaction would imply corresponding legal claims. Grifols also reiterated that the agreement reached with Haier does not include a termination fee as it is not customary in the Chinese mergers and acquisitions market.

The short seller said the company’s financial statements included earnings from BPC Plasma and Haema, two companies for which Grifols has a call option and that are owned by Scranton Enterprises BV, an investment vehicle for former executives including members of the founding family.

--With assistance from Macarena Muñoz.

(Updates with bond payments in sixth paragraph.)

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