Summary:
Canoo's CEO approved to buy the company's assets for $4 million.
Judge found the bidding process fair, with no other bidders.
Aquila plans to serve clients like NASA and the Department of Defense.
Other interested parties raised concerns about foreign ownership.
Ongoing lawsuit with Harbinger could impact asset valuation.
Canoo's Asset Sale Approved
The bankruptcy judge has given the green light for Canoo’s CEO, Anthony Aquila, to purchase the EV startup's assets for approximately $4 million in cash. After assessing limited objections, Judge Brendan Shannon confirmed that the bidding process was fair, noting that Aquila was the sole bidder.
The Plan Ahead
Aquila intends to provide services to clients like NASA and the Department of Defense, who had previously acquired Canoo vehicles. This marks Canoo as another casualty in the wave of EV startup bankruptcies, joining the ranks of Fisker, Lordstown Motors, and Nikola.
Competing Interests
Despite Aquila’s successful bid, there were eight other parties who expressed interest, signing NDAs to evaluate the assets. However, only a few made serious offers, with one potential bidder raising concerns about foreign ownership that could complicate the sale.
Legal Challenges and Controversies
Notably, Harbinger, an electric truck startup with ties to Canoo, objected to the sale, alleging Canoo was hiding assets. Aquila's legal team dismissed these claims as lacking merit. The ongoing lawsuit between Canoo and Harbinger, regarding trade secrets, has become central to the asset sale, with potential financial implications hinging on its outcome.
Court Proceedings
During the hearings, Harbinger’s lawyer questioned the valuation of Canoo’s estate, arguing that without clarity on the alleged trade secrets, potential bidders were not fully informed. However, Judge Shannon upheld the process, asserting that the trustee's negotiations with Aquila were thorough and transparent.
What Lies Ahead
The sale is seen as a significant step for Aquila, who will now have control over Canoo's assets, amid ongoing legal disputes and the challenges faced by the EV sector.
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