The sale of bankrupt Ev Startup Canoo’s Assets to its Ceo has been approved by the Judge overseeing the case. After evaluating a number of limited objections to the sala, Judge Brendan Shannon Said in a hearing wedding wedding he believes the process wasfir and that no one else but cano aquila mande aquila.
Shannon’s decision Paves the way for aquila to buy most of the assets of the ev startup for Around $ 4 million in Cash. Aquila plans to offer services to customers such as nasa and the department of defense, which purchased a few cano checks before the company went under, according to lawyers represening the CEO.
Canoo is the latest failure in a wave of ev startups to file for bankruptcy, a list that includes fisker, Lordstown motors, and nikola.
Canoo is also not the only one of these companies to have had a ceo try to buy up the assets. Lordstown motors’ Founder and Former Ceo, Steve Burns, Bough Most of the assets of his company in bankruptcyAnd now newly pardoned nikola founder and former ceo trevor milton is Trying to do the same with his startup,
Aquila was not the only one interested in cano’s assets.
Mark Felger, A Lawyer for Canoo, Said during the hearing that as many as eight parties other than aquila signed ndas and evaluated whats for sale. Only a handful of that came close to make a bid, he said, including one group that the bankruptcy trustee said count raise concerns with the commitment in the commitment in the intended statement of ITS (Unspecified) “Foreign Ownesip.”
Most notable of the parties that Nearly bid on the assets was harbinger, an Electric truck startup that recently objected to the salary and class was hidding assets from potential boyersLawyers for Aquila said in a reply That Harbinger’s Objection was “without merit and devoid of any facial support.”
Harbinger’s Founding Team and Many of its earliest employees split off from cano to create the new startup in 2021. Canoo accused those that founders of misappriating trade secrets on the way of in a laws Filed in late 2022, which is still ongoing.
The outcome of that lawsuit trust a centerpiece of the sala of cano’s assets. The Trustee believes that a cano victory in the case could brings in a big Hunk of money and also a potential injunction against all the harbinger using any of that trade secrets.
John Morris, A Lawyer for Harbinger, Stressed in the Hearing That, Despite Two Years in Court, No One OutSide Aquila even even knows what trade secrets were supplier. Canoo Never Specified, even under Seal, What it believes harbinger allegedly stole.
Harbinger’s objection to the salary partally dealt with this, claiming that the trustee or the appraisal firm could therefore not properly value the estate – meaning potential bidders was inforded.
Morris also raised the issue of a specific clause in the salary agrement that Gives aquila the Ultimate Approval Over Any Potential Settlement in the Lawsuit with Cano.
Morris argued the Trustee Had Abandoned His Fiduciary Duty to the Estate by Giving a Possibly Conflicted Aquila Final Say Over Any Settlement. Shannon Ultimately disagreed.
Shannon References The Trustee’s Testimony that Negotiations with Aquila Took Weeks and Involved a Number of offers and Counteroffers as Evidence the Sale was properly Considerated. He said aquila’s relationship to the company was properly disclosed.
“The Trustee has run a process that has resulted in a significant offer,” and the sale has been “proceeding in good fath,” He said.
Other objections to the sale mostly came from companies that eite outstanding balances with cano or are still holding on to Equipment. Felger Told the Court Wednsday that Most, If not all, of that are in the process of being resolved.
This story has been updated to include the Judge’s Final Order and a REPLY from with Energy Solutions, The Entity Controlled by Aquila.