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SunEdison’s Failed Deals Could Bite Back in Bankruptcy

Vivint is suing SunEdison after a takeover deal collapsed. Above, Vivint technicians install solar panels...

Potential damages stemming from deals SunEdison failed to close while its finances were deteriorating could total hundreds of millions of dollars, according to court filings and people familiar with the deals. Litigation over the failed deals could add to the company’s already lengthy list of creditors and possibly extend to its publicly traded subsidiaries.

SunEdison, once a darling of the clean-power industry, has lost 99% of its market value since last summer and is working with advisers on a chapter 11 filing, The Wall Street Journal has reported. The company owes creditors nearly $10 billion, according to regulatory filings.

SunEdison’s swift rise and fall, chronicled in a Wall Street Journal article last week, was fueled by its appetite for takeovers and the availability of cheap money from Wall Street to finance them. When that financing dried up during a volatile period in the markets and a slide in oil prices, SunEdison backed out of several transactions.

Of 11 deals reached since last May, SunEdison has failed to close five with a combined value of about $3.8 billion, according to FactSet. It is in active litigation or arbitration on two of them, and...


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