Harbinger Accuses Canoo of Hiding Assets During Bankruptcy Sale

Harbinger Objects to Canoo Asset Sale

Harbinger, an electric trucking firm, has formally objected to the proposed sale of Canoo’s assets to its current CEO. This action introduces a potential complication into the ongoing, two-month-old bankruptcy proceedings.

Allegations of Hidden Assets

The objection, submitted late Friday, alleges that Canoo failed to disclose certain assets during the sale process. Specifically, it points to acquisitions made from another bankrupt electric vehicle company, Arrival.

Furthermore, Harbinger contends that Canoo listed assets that it believes the company did not legitimately possess, although the specific assets in question were not identified.

Concerns Over Sale Process Fairness

Harbinger’s assessment stems from its own consideration of acquiring the assets and subsequent access to the virtual data room available to prospective buyers.

The company asserts that the sale process has demonstrably favored Mr. Aquila, Canoo’s CEO, Anthony Aquila, who initially reached an agreement to purchase the assets in early March.

Limited Marketing and Appraisal

Harbinger claims the bankruptcy trustee accepted Aquila’s offer without undertaking a broad marketing effort to solicit competing bids or securing a professional appraisal of the assets’ value.

A History of Conflict

This objection represents the latest development in a strained relationship between Harbinger and Canoo. Harbinger was founded in 2021 by a group of former Canoo employees.

Subsequently, Canoo initiated legal action against Harbinger in late 2022, alleging the misappropriation of trade secrets by the departing employees.

Impact on Trade Secret Case

This trade secret litigation remained active when Canoo filed for bankruptcy in January. Notably, the assets being purchased by Aquila include an interest in any potential settlement Harbinger might be obligated to pay to Canoo.

Settlement Control Concerns

A specific provision within the purchase agreement grants Aquila and the trustee joint approval authority over any settlement reached in the Harbinger trade secret case.

Harbinger argues that this arrangement could potentially contravene guidelines outlined in the Department of Justice’s handbook for Chapter 7 trustees.

No Immediate Response

Requests for comment directed to the bankruptcy trustee, Jeoffrey Burtch, and legal counsel for Canoo have not yet received a response.

Attorneys representing both Aquila and Harbinger have declined to provide any commentary on the matter.