A London-based investor, Charles Garson, has moved to halt the sale of the assets of electric vehicle startup Canoo to its CEO, Anthony Aquila, arguing the process was flawed. Garson has submitted a $20 million bid for Canoo’s assets, which significantly outstrips Aquila’s offer of $4 million in cash, coupled with the cancellation of around $11 million in loans owed to his financial firm.
In a motion filed with a Delaware bankruptcy court, Garson asserts that he was informed by the bankruptcy trustee that his offer would be taken into account and was given until late April to finalise the details. However, just two days after this communication, the trustee proceeded with the sale hearing, finalising the transaction on April 11 without considering Garson’s bid. The bankruptcy trustee has not commented on the matter.
Garson’s protest isn’t isolated. Harbinger Motors, an EV trucking startup founded by former Canoo employees, also objected to the sale, but their appeal was overruled by the bankruptcy judge, prompting Harbinger to file an appeal.
Details about Garson are sparse; his LinkedIn profile indicates a focus on real estate investments in London, where he is listed as a director of Garland Holdings Limited. However, the motion to vacate does not provide any insight into Garson’s reasons for his interest in Canoo or whether he has other investors backing him. His supporting declaration for the motion is heavily redacted and filed under seal.
Garson claims to have relied on communications from the trustee that led him to believe he had ample time to submit his superior bid, which ultimately resulted in him opting not to formally contest the sale or file a competing bid at that time. He accused the trustee of moving forward with the sale despite the existence of a distinctly better offer.
The motion highlights that up to eight parties expressed interest in Canoo’s assets prior to the sale, with only a handful making bids. One of these parties raised concerns over foreign ownership that could complicate the sale process, although it is unclear if Garson’s bid ties back to these issues.
The situation surrounding Canoo and its asset sale reflects the complexities and competing interests that can arise in bankruptcy proceedings, particularly in sectors like electric vehicles that are experiencing rapid changes and investment flows.
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