UK Investor Challenges Canoo Asset Sale to CEO

UK Investor Challenges Canoo Asset Sale to CEO

London-based investor Charles Garson has filed a motion to halt the sale of bankrupt EV startup Canoo's assets to its CEO, Anthony Aquila. Garson claims he offered a significantly higher bid of $20 million, compared to Aquila's $4 million cash offer (plus debt forgiveness).

Garson's Superior Offer Allegedly Ignored

Garson alleges the bankruptcy trustee assured him his offer would be considered. He claims he was given until the end of April to finalize details. However, the sale to Aquila was finalized just two days later, on April 11th. The trustee has not yet commented on the matter.

Other Objections to the Sale

Garson is not the only party contesting the sale. Harbinger Motors, an EV trucking startup founded by former Canoo employees, also objected prior to the sale's closure. Their objection was overruled, and they have since filed an appeal.

Limited Information Available on Garson

Public information on Garson is scarce. His LinkedIn profile indicates involvement in London real estate investments. He is listed as a director of Garland Holdings Limited, a UK real estate investment firm.

Details of Garson's Offer Remain Sealed

The motion to vacate the sale does not explain Garson's interest in Canoo or if other investors are involved. Supporting documents provided by Garson have been filed under seal.

Trustee Accused of Favoring Aquila's Bid

The filing accuses the trustee of proceeding with Aquila's offer despite Garson's allegedly superior bid. Garson claims he relied on the trustee's communication and did not formally submit a competing bid while finalizing his offer. Neither Garson's nor Aquila's legal representatives have commented.

Multiple Parties Evaluated Canoo's Assets

Prior to the sale, at least eight parties signed non-disclosure agreements and evaluated Canoo's assets. A lawyer for Canoo previously revealed that only a few parties came close to bidding, including one group that raised potential concerns with the Committee on Foreign Investment in the United States due to unspecified foreign ownership. It is unclear if this refers to Garson's bid.

This developing situation raises questions about the transparency and fairness of the Canoo asset sale process. Further information is needed to understand the full scope of the situation and the potential implications for the future of Canoo.