A London-based investor is seeking to block the sale of electric vehicle startup Canoo’s assets to its chief executive, arguing that the bankruptcy process was flawed and disregarded a higher offer.
Charles Garson, a U.K. real estate investor, filed a motion in Delaware bankruptcy court last week asking to vacate the sale of Canoo’s assets to CEO Anthony Aquila. Garson, who offered $20 million, said in court documents that he believed he had time to finalize his proposal, only to learn the sale had been approved two days later.
See also: Judge Approves Canoo Asset Sale to CEO Anthony Aquila Amid Bankruptcy Proceedings
Garson’s bid was significantly higher than Aquila’s $4 million cash offer. Aquila’s bid also included extinguishing about $11 million in debt Canoo owed to his financial firm. Garson’s filing claims the bankruptcy trustee told him he had until the end of April to complete the terms of his offer, but then abruptly closed the sale on April 11 without further engagement.
“[Garson] believed he had more than enough time to submit his superior bid based on communications with the Trustee and his counsel,” the motion stated. “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.”
See also: Harbinger Challenges Canoo’s Asset Sale Amid Bankruptcy Proceedings
Aquila’s legal representatives did not respond to a request for comment. The bankruptcy trustee has also not commented on the matter.
Garson is not the only party to raise objections. Harbinger Motors, a California-based EV startup founded by former Canoo employees, opposed the sale before it was finalized, but the bankruptcy judge overruled the objection. Harbinger has since filed an appeal.
There is little public information on Garson’s background. He is listed as a director of Garland Holdings Limited, a U.K. real estate investment firm, and his LinkedIn profile identifies him as being active in property investments. His motivation for pursuing Canoo’s assets remains unclear, and a declaration filed in support of his motion—along with 23 exhibits—was submitted under seal.
See also: Canoo CEO Moves to Acquire Bankrupt EV Startup’s Assets in $4 Million Deal
Earlier this month, Canoo’s attorney disclosed in court that eight parties signed non-disclosure agreements to evaluate the company’s assets, but only a few moved toward formal bids. One potential bidder raised national security concerns due to foreign ownership, though it is not known whether Garson’s offer was the one referenced.
