A London-based investor has petitioned a bankruptcy judge in Delaware to halt the sale of Electric Vehicle (EV) startup Canoo’s assets to its CEO, labeling the process as “flawed.”
Charles Garson, an investor from the UK without apparent connections to Canoo, proposed $20 million for the company’s assets. A legal representative for Garson filed a motion to cancel the sale, asserting that his offer was “far superior” to the $4 million bid from Canoo’s CEO, Anthony Aquila. Aquila’s proposal also involved the extinguishment of approximately $11 million in loans owed to his financial firm by Canoo.
Garson claimed that the bankruptcy trustee assured him his offer would be considered and that he had until late April to finalize details. However, two days after this assurance, the trustee proceeded with the sale hearing, finalizing the sale to Aquila on April 11. The bankruptcy trustee has not responded to requests for comment.
Harbinger Motors, an EV trucking startup established by former Canoo employees, also objected to the sale before its completion. Although the bankruptcy judge dismissed the objection, Harbinger has since filed an appeal.
Little information is available about Garson online. His LinkedIn profile indicates he is involved in real estate investments and is based in London. He is listed as a director of Garland Holdings Limited, a real estate investment company in the UK, as per the country’s business registry.
The motion to vacate does not specify Garson’s interest in Canoo or if other investors are involved. He submitted a declaration supporting the motion, including 23 exhibits filed under seal. Garson’s lawyer has not yet commented.
According to the filing, Garson believed he had ample time to present his offer based on communications with the trustee. Relying on these communications, he did not formally object to the sale or submit a competing bid while he was finalizing his offer and seeking clarifications from the trustee.
The filing also states that despite Garson’s superior offer, the trustee chose to seek court approval for Aquila’s transaction. Aquila’s lawyer has not commented.
Additionally, a lawyer for the bankrupt startup disclosed that eight parties signed NDAs and assessed Canoo’s assets before the sale. Only a few parties, including one with potential foreign ownership concerns, were close to making a bid. It remains unclear if Garson’s bid was among these considerations.
