The chief executive officer of electric vehicle startup Canoo has made an offer to purchase nearly all of the company’s assets out of bankruptcy for $4 million, according to a court filing.
The proposed sale, which would also clear more than $11 million in debt Canoo owed to a financial firm controlled by the CEO, comes just six weeks after the company filed for Chapter 7 liquidation.
See also: Canoo Files for Bankruptcy, Ceases Operations Immediately
A new entity controlled by CEO Anthony Aquila, named WHS Energy Solutions, has agreed to acquire Canoo’s manufacturing equipment, completed vehicles, intellectual property, contracts, and inventory, court documents show. However, the company will not assume any of Canoo’s leases or creditor claims.
The bankruptcy trustee overseeing the case stated in the filing that selling the assets to Aquila’s entity is the “best course of action,” citing the challenges of securing new financing for EV production and the oversupply of assets from other failed EV startups. “The failure of other EV startups… has produced a glut of EV-related assets available at fire-sale prices,” the trustee wrote.
See also: Canoo Faces Executive Departures and Financial Struggles Amid Operational Realignment
While other bidders can submit offers before a March 28 deadline, the trustee noted that Canoo’s estate lacks funds to maintain its assets, making an alternative sale less feasible. Aquila has indicated that his primary motivation is to honor commitments to government programs. “Unless they can be assured that the Buyer can provide assurance promptly that it will be able to continue to provide the services and support provided by the Debtors, the programs will be materially delayed,” the filing stated.
It remains unclear what Aquila intends to do with Canoo’s assets if the acquisition is finalized. Canoo, which went public in 2020 through a special purpose acquisition company (SPAC) merger, struggled to gain traction in the EV market and sold only a limited number of vehicles, primarily to government agencies such as NASA and the U.S. Postal Service.
See also: Nikola Seeks Buyer for Entire Business Amid Bankruptcy Proceedings
