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May 10 (Reuters) - Solar panel installer Vivint Solar Inc
VSLR.N said it would participate in SunEdison Inc's SUNEQ.PK
bankruptcy case to maximize its recovery from claims against
SunEdison, which terminated its agreement to buy Vivint in
March.
Vivint Solar has filed a lawsuit in Delaware against
SunEdison alleging that the solar company willfully breached its
obligations under their merger agreement and is seeking damages.
SunEdison's bankruptcy filing on April 21 has created a
temporary stay on the prosecution of Vivint's lawsuit, the
company said in a regulatory filing on Tuesday.
SunEdison, once the fastest-growing U.S. renewable energy
company, filed for Chapter 11 bankruptcy protection after a
short-lived but aggressive spate of debt-fueled acquisitions
proved unsustainable.
Investors began to lose confidence in SunEdison's
expansion, when the company announced a $2.2 billion deal to
acquire Vivint in July.
The Vivint deal also led to a lawsuit by billionaire David
Tepper's Appaloosa Management, which sued to block SunEdison's
unit, TerraForm Power Inc TERP.O , from buying some Vivint
assets.