Canoo Asset Sale Blocked: Mysterious Financier Intervenes

London Investor Challenges Canoo Asset Sale

An unidentified investor based in London has petitioned a Delaware bankruptcy judge to halt the sale of assets belonging to electric vehicle startup Canoo. The investor alleges the sale process was fundamentally flawed.

$20 Million Offer Submitted

Charles Garson, a U.K.-based investor with no previously known connection to Canoo, submitted a $20 million offer for the company’s assets, as detailed in a court filing. Legal representation for Garson filed a motion on Friday requesting the sale be overturned. They contend that Garson’s offer significantly exceeded the $4 million cash bid made by Canoo’s CEO, Anthony Aquila.

Aquila’s proposal also incorporates the cancellation of approximately $11 million in loans owed by Canoo to his personal financial firm.

Timeline of Events

According to the filing, Garson was informed by the bankruptcy trustee that his offer would be given due consideration. He was reportedly given until the end of April to complete the necessary arrangements. However, just two days after this communication, the trustee proceeded with the sale hearing and finalized the transfer of Canoo’s assets to Aquila on April 11th.

Requests for comment from the bankruptcy trustee have currently gone unanswered.

Previous Objections to the Sale

Garson isn't the only party to voice concerns regarding the sale. Harbinger Motors, an EV trucking company founded by former Canoo employees, previously objected to the transaction before it was approved. The bankruptcy judge dismissed this objection, but Harbinger Motors has since filed an appeal.

Investor Background

Publicly available information about Garson is limited. His LinkedIn profile indicates he is based in London and involved in real estate investments.

He is listed as a director of Garland Holdings Limited, a U.K.-based real estate investment company, according to the country’s official business registry.

Motivation Remains Unclear

The motion to vacate the sale does not disclose Garson’s specific reasons for interest in Canoo, nor does it mention any potential involvement of other investors. Garson submitted a declaration supporting the motion, accompanied by 23 exhibits, but all documents have been sealed from public view.

A legal representative for Garson has not yet responded to requests for comment.

Reliance on Trustee Communication

The filing states, “[Garson] believed he had more than enough time to submit his superior bid based on communications with the Trustee and his counsel. In reliance on such communications, Movant did not object to the sale or formally submit a competing bid, all while continuing to finalize his offer and requesting clarifications from the Trustee.”

The document further asserts, “Despite a clearly superior offer being practically thrown at him, the Trustee determined to seek Court approval of a transaction” with Aquila. Counsel for Aquila has not responded to a request for comment.

Prior Interest in Canoo’s Assets

Earlier this month, a lawyer representing the bankrupt startup revealed that as many as eight parties had signed non-disclosure agreements and evaluated Canoo’s assets. Only a small number of these parties presented bids, including one group that the bankruptcy trustee indicated might raise concerns with the Committee on Foreign Investment in the United States due to its unspecified “foreign ownership.”

It remains uncertain whether Garson’s bid is the one to which the trustee was referring.