Lofter Group, a Hong Kong property developer, faces a HK$130 million lawsuit over alleged breaches of guarantor obligations. This legal action follows the recent death of the company's founder and adds to the embattled firm's troubles.

A Hong Kong property developer has been sued for HK$130 million (US$16.6 million) over allegedly breaching guarantor obligations in two bond subscription agreements, becoming the latest lawsuit to implicate the embattled company and following its founder’s sudden death earlier this week. Lofter Group, known for its urban renewal projects across the city’s core districts, and an affiliated company were named as defendants in the High Court action initiated by Earth Core Holdings, a firm...