Wow. . . just wow. . . I'm glad that nobody got hurt, and I'm hoping that they were insured!
My children are now 5 and 4, and they've both got more comprehension and understanding that even I give them credit for. Personally I would be very honest about it and probably leverage the discussion into how dangerous playing with certain things can be. On the flipside unless this is going to require his friends family to relocate and thus lose touch with them I don't think that I'd put too much emphasis on it, of course making the assumption that it's not going to impact his actual environment much.
Hopefully the boys will be able to learn that as good friends they can help each other through difficult times.
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Halfway to hell and picking up speed.
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