Mysterious Financier Seeks Court Order to Halt Canoo Asset Sale: Unveiling the Secrets Behind the Legal Battle
A recent development in the world of electric vehicle startups has emerged, as a mysterious investor from London has filed a motion to halt the sale of Canoo’s assets, claiming the process was “flawed.” This situation raises important questions about the future of Canoo and the integrity of its asset sale process.
Investor Challenges Canoo’s Asset Sale
Charles Garson, a U.K.-based investor with no apparent connections to Canoo, has offered $20 million for the company’s assets. In a legal filing, Garson’s attorney argued that his offer significantly exceeds the $4 million bid made by Canoo’s CEO, Anthony Aquila. The CEO’s bid also includes the cancellation of approximately $11 million in loans owed to his financial firm.
Concerns Over Sale Process
According to Garson’s filing, he was informed by the bankruptcy trustee that his offer would be considered and that he had until the end of April to finalize the details. However, just two days later, the trustee proceeded with the sale hearing, ultimately closing the deal on April 11. The bankruptcy trustee has not yet responded to requests for comment.
Opposition from Other Stakeholders
Garson is not the only one questioning the legitimacy of the sale. Harbinger Motors, an electric vehicle trucking startup founded by former Canoo employees, also objected to the sale. Although the bankruptcy judge overruled their objection, Harbinger has since filed an appeal.
Limited Information on the Investor
Information about Garson is scarce. According to his LinkedIn profile, he is based in London and involved in real estate investments. He is listed as a director of Garland Holdings Limited, a real estate investment company in the U.K., per the country’s business registry.
Details of the Motion Filed
The motion to vacate does not clarify Garson’s interest in Canoo or whether other investors are involved. His legal declaration supporting the motion includes 23 exhibits, all of which were filed under seal, limiting public access to the details.
Garson’s filing states: “Despite a clearly superior offer being practically thrown at him, the Trustee determined to seek Court approval of a transaction with Aquila.” A request for comment from Aquila’s legal representative has not been answered.
Evaluating Canoo’s Assets
Prior to the sale, as many as eight parties signed non-disclosure agreements (NDAs) and assessed Canoo’s assets, according to a lawyer for the bankrupt startup. While a few parties considered making bids, one group raised concerns regarding potential implications with the Committee on Foreign Investment in the United States due to unspecified “foreign ownership.” It remains unclear if Garson’s bid is linked to these concerns.
As this situation unfolds, the implications for Canoo and its stakeholders could be significant. Stakeholders and potential investors will be keenly watching how this legal battle develops.
