Cityscape Financial Corp., a subprime lender that imploded this year, is suing the buyer of its U.K. business, alleging the company has not paid up fully.

Ocwen Financial Corp., a West Palm Beach, Fla., distressed-asset specialist, said in April that it would buy City Mortgage Corp., London. The deal, which was to bring Cityscape a reported $86 million in cash, was seen as a Band-Aid for the capital-strapped lender.

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