Technology
Teh head of Canoo is acquiring nearly all of the failed EV startup’s assets from bankruptcy, as per a court filing.
A newly established entity overseen by CEO Anthony Aquila has proposed to purchase “almost all” of the assets for $4 million in cash. This transaction will also eliminate over $11 million in debt that Canoo owed to a financial firm associated with Aquila, which provided funding to the startup during its final months.
This sale proposal arrives just six weeks after Canoo initiated Chapter 7 bankruptcy proceedings in Delaware and ceased operations.The startup, which became public in 2020 through a merger with a special purpose acquisition company, never delivered more than a few electric trucks to government clients such as NASA, the United States Postal Service, and the Department of Defense before its collapse.
Canoo informed the court that as of February 24 it possessed approximately $145 million in assets against $175 million in liabilities and around $12 million in cash and equivalents. Other interested parties may submit “higher and better offers” for the company’s assets before a deadline set for March 28 according to the filing.
Though, the bankruptcy trustee noted in their filing that proceeding with Aquila’s purchase might be “the best course of action.” The trustee provided several reasons for this conclusion including a “lack of financing currently available” to support EV production.
He mentioned that failures among other EV startups (like Fisker and Nikola—though he did not specify them by name) have created an “oversupply of EV-related assets” which could be acquired at “fire-sale prices.” He also stated that Canoo’s estate lacks sufficient funds to cover “rents, security expenses, and insurance necessary to maintain asset integrity.”
As long as it proceeds forward, Aquila’s new entity — named WHS Energy Strategies Inc. and established in Delaware — will take possession of Canoo’s manufacturing equipment, completed vehicles, intellectual property rights, contracts along with other inventory and resources. WHS Energy Strategies will not assume any leases from Canoo nor be liable for any claims made by other creditors against Canoo’s estate.
Aquila has informed the bankruptcy trustee that one critically important reason behind acquiring these assets is his intention to uphold [Canoo’s] commitment towards providing services and support for specific government programs.
“While there is currently uncertainty regarding all government expenditures , potential buyers have been advised by these agencies that unless they can assure prompt service continuity from them , projects may face significant delays forcing governments into lengthy processes seeking alternative contractors,” wrote the trustee within their submission.
it isn’t uncommon for CEOs or founders attempting acquire their bankrupt startups’ properties even within electric vehicle sectors . In 2023 , former CEO from defunct EV company Lordstown Motors purchased most its holdings while launching new venture called LandX Motors . However typically such properties are sold off either piecemeal or transferred over companies .
