A war of words rekindled on Thursday after a United States church accused the Hong Kong International School (HKIS) of misleading students and parents about the value of some of its properties, an accusation the institution has brushed aside and called part of a “smear campaign”.

The Lutheran Church-Missouri Synod (LCMS) said that the Hong Kong International School Association Limited (HKISAL), the institution’s operator, held properties not subject to restrictive lease terms that were valued at more than HK$650 million (US$83.6 million), contradicting what it had told students and parents.

The association denied the accusation and threatened to take legal action against the church group for defamation.

The missionary organisation, which co-founded the school in 1966, last month sued the HKISAL for allegedly violating an operating agreement by racking up large reserves on its balance sheet and only serving “the rich and privileged few”.

“The LCMS stands by our valid concerns regarding the HKISAL’s financial management and is disappointed to see further examples of the HKISAL misleading the HKIS community,” a senior representative for the church said.

“The LCMS urges HKISAL to communicate honestly and transparently to the HKIS community.”