The deal-making frenzy that hastened SunEdison Inc.’s collapse could continue to cause problems for the solar-power company during any bankruptcy, the Wall Street Journal reported today. Potential legal 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 percent of its market value since last summer and is working with advisers on a chapter 11 filing. The company owes creditors nearly $10 billion, according to regulatory filings. 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 other counterparties are reviewing litigation options.
