Nozar, one of Spain's biggest property companies, faces going into administration with debts totalling €4bn.
Avalatransa, one of Nozar's creditors, has asked a judge in Madrid to put the privately held property company into administration.
The judge gave Nozar five days to respond to the court action. But if the company does go into administration, it will be Spain's second biggest corporate default.
Last year creditor Avalatransa asked the courts to put Nozar into administration twice over unpaid debts, which in total exceed €4bn.