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The CEO of Canoo is buy nearly all of the defunct EV startup ’s asset out of bankruptcy , according to a courtfiling .
A fresh entity controlled by the CEO , Anthony Aquila , has offer to buy “ substantially all ” of the plus for $ 4 million in cash . The sales event will also wipe clean a more - than-$11 million debt Canoo owed to a financial business firm escape by Aquila , which lend money to the startup during its final months .
The sale proposal comes just six weeks after Canoo charge for a Chapter 7 failure settlement in Delaware and offend down its business . The startup , which went public in 2020 as part of a merger with a special intent accomplishment fellowship , never sell more than a handful of its electric vans to authorities entity like NASA , the United States Postal Service , and the Department of Defense , before it give way .
Canoo has told the court that as of February 24 it had around $ 145 million in assets and $ 175 million in liability , and around $ 12 million in cash and equivalents . Other concerned party can submit “ higher and better offer ” for the companionship ’s plus before a deadline of March 28 , accord to a filing .
But the bankruptcy trustee wrote in the filing that the “ best row of action ” would be to proceed with the sales agreement to Aquila . The trustee cited a number of reasons for this , such as a “ lack of financing currently useable ” to support EV manufacture .
He write that the failure of other EV startup ( like Fisker and Nikola , though he did not name them specifically ) has grow a “ oversupply of EV link up assets ” that are uncommitted “ at fire - sales event prices . ” He also wrote that Canoo ’s estate does n’t have the money to cover “ rents , security cost , and insurance necessary to maintain the integrity of the asset . ”
As long as it proceed through , Aquila ’s new entity — called WHS Energy Solutions , Inc. and created in Delaware — will welcome Canoo ’s fabrication equipment , complete vehicle , intellectual property , contracts , and other inventory and asset . WHS Energy Solutions is not look at over any of Canoo ’s letting , and will not be responsible for for any of the claims other creditors have against Canoo ’s land .
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Aquila has told the bankruptcy trustee that a “ principal motivation ” for buying the asset is the CEO ’s “ desire to honor [ Canoo ’s ] commitment to allow service and support for certain government programs . ”
“ While the viability of all government disbursal is presently uncertain , the Buyer has been advised by these office that unless they can be secure that the Buyer can provide sureness promptly that it will be able to continue to cater the service and support provided by the Debtors , the programme will be materially delayed and the government will have to commence the time - consume process of seeking and restrict other contractors , ” the trustee wrote in the filing .
chief operating officer or founder trying to corrupt up the plus of their bankrupt startup is not uncommon , even in the man of electric vehicles . In 2023 , the former chief executive officer of bankrupt EV startup Lordstown Motors purchasedmost of its assetsand started a Modern company holler LandX Motors . But more often than not , the assets get sold to other companies or auctioned off in pieces .
It ’s unclear what Aquila plans to do with Canoo ’s assets if he is successful in dispatch the transaction . The Canoo CEO did not respond to a request for comment .
Only Aquila ’s fiscal business firm and related entity held “ secured ” claims , meaning their debt was backed by collateral pledge by Canoo . The debts owe to its many other creditor — which let in automotive provider Magna ( owed nigh $ 3 million ) , and financial advisors Yorkville ( which sold gazillion of shares of Canoo store and are owe $ 7 million ) are behind Aquila ’s in line to get paid back .
