A mysterious investor out of London has asked a bankruptcy judge in Delaware to stop the sale of EV startup Canoo’s assets to its CEO, calling it a “flawed” process.
Charles Garson, a UK-based investor with no obvious ties to the EV startup, offered $20 million for Canoo’s assets, according to a filing. A lawyer representing Garson filed a motion Friday to vacate the sale, claiming he presented a “far superior offer” to that of Canoo CEO Anthony Aquila, who bid just $4 million in cash for the assets. (Aquila’s bid also includes the extinguishment of around $11 million in loans Canoo owes to his own financial firm.)
Garson allegedly was told by the bankruptcy trustee that his offer would be considered and he had until roughly the end of April to finalize the details, according to the filing. Two days after Garson claims he was told this, the trustee “moved forward with the Sale Hearing” and closed the sale of Canoo’s assets to Aquila. The sale ultimately closed on April 11. The bankruptcy trustee did not respond to a request for comment.
Garson is not alone in protesting the sale. Harbinger Motors, an EV trucking startup that was created by a number of ex-Canoo employees, objected to the sale before it was finalized. The bankruptcy judge overruled that objection; Harbinger has filed an appeal.
There is very little information available about Garson online. His LinkedIn profile states he is located in London and involved in real estate investments. His is listed as a director of a real estate investment company called Garland Holdings Limited in the U.K, according to the country’s business registry.
The motion to vacate does not explain why Garson is interested in Canoo, or whether other investors are involved. Garson provided a declaration in support of the motion to vacate, which includes 23 exhibits. But all of those documents were filed under seal. A lawyer for Garson did not immediately respond to a request for comment.
“[Garson] believed he had more than enough time to submit his superior bid based on communications with the Trustee and his counsel. 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” according to the filing.
“Despite a clearly superior offer being practically thrown at him, the Trustee determined to seek Court approval of a transaction” with Aquila, the filing reads. A lawyer for Aquila did not respond to a request for comment.
As many as eight parties signed NDAs and evaluated Canoo’s assets prior to the sale, a lawyer for the bankrupt startup revealed earlier this month. He said only a few of those came close to making a bid, including one group that the bankruptcy trustee said could raise concerns with the Committee on Foreign Investment in the United States because of its (unspecified) “foreign ownership.” It’s not clear if Garson’s bid is what the trustee was referring to.
