Mysterious financier asks judge to stop Canoo asset sale

Tech Crunch - Apr 28th, 2025
Open on Tech Crunch

A UK-based investor, Charles Garson, has filed a motion in a Delaware bankruptcy court to stop the sale of electric vehicle startup Canoo's assets to its CEO, Anthony Aquila. Garson, who has no apparent ties to Canoo, offered $20 million for the assets, a significantly higher bid than Aquila's $4 million plus the extinguishment of approximately $11 million in loans Canoo owes to his financial firm. Despite the higher offer, the sale to Aquila was finalized on April 11. Garson's motion claims that the bankruptcy trustee prematurely closed the sale process without considering his bid, which he was assured had until the end of April to be finalized. Harbinger Motors, a company formed by former Canoo employees, also objected to the sale but was overruled by the bankruptcy judge, prompting an appeal.

Garson's involvement in the case remains somewhat mysterious, as little is known about him aside from his background in real estate investments through Garland Holdings Limited. The motion to vacate the sale does not clarify his interest in Canoo or whether he represents other investors. The case highlights concerns about the sale process's transparency and fairness, with Garson arguing that his superior bid was ignored. Additionally, the involvement of multiple parties, some with potential foreign ownership issues, underscores the complex dynamics surrounding the sale of Canoo's assets. The outcome of Garson's motion and Harbinger's appeal could have significant implications for the company's future and its stakeholders.

Story submitted by Fairstory

RATING

5.2
Moderately Fair
Read with skepticism

The article provides a detailed account of a contested bankruptcy sale involving Canoo's assets, focusing on the claims of a mysterious investor, Charles Garson. While it covers multiple perspectives, the narrative leans towards Garson's viewpoint, potentially creating an imbalance. The reliance on limited sources and the absence of direct quotes from key parties affect the story's credibility and accuracy. Despite these shortcomings, the article is timely and relevant to ongoing discussions in the electric vehicle industry. It has the potential to engage a niche audience interested in corporate legal disputes but may not resonate broadly due to its technical nature. Overall, the article could benefit from clearer sourcing, enhanced transparency, and a more balanced presentation of perspectives to improve its reliability and impact.

RATING DETAILS

6
Accuracy

The article presents several factual claims that are central to the narrative, such as the involvement of Charles Garson, the amount of his bid, and the details of Anthony Aquila's bid. These claims are generally aligned with the known facts about the case, but the lack of direct evidence or confirmation from primary sources like court documents or official statements limits the story's verifiability. For example, the article states Garson offered $20 million, but this needs corroboration from court filings or direct quotes. Similarly, the description of Aquila's bid includes extinguishing loans, which requires precise verification. The absence of comments from key parties, such as the bankruptcy trustee and the involved lawyers, further affects the factual precision.

5
Balance

The article attempts to present multiple perspectives, including those of Charles Garson, Anthony Aquila, and Harbinger Motors. However, it seems to lean towards Garson's narrative by focusing more on his claims and grievances. The lack of responses from Aquila and the bankruptcy trustee means the story might not fully represent their viewpoints, which could create an imbalance. Additionally, while Harbinger Motors' objection is mentioned, the details of their concerns are not explored, which might have provided a more rounded view of the situation.

6
Clarity

The article is written in a straightforward manner, making it relatively easy to follow. However, the structure could be improved to better organize the sequence of events and the roles of different parties involved. Some sentences are complex and densely packed with information, which might hinder understanding. The article could benefit from clearer segmentation of claims and counterclaims to improve reader comprehension.

4
Source quality

The article relies on a limited range of sources, primarily legal filings and claims made by Charles Garson. There is a noticeable absence of direct quotes or statements from primary parties involved, such as the bankruptcy judge, trustee, or Aquila. This reliance on secondary sources and lack of corroborating evidence from authoritative figures or documents weakens the overall source quality. The article would benefit from more diverse and credible sources to enhance its reliability.

5
Transparency

The article does not clearly disclose how the information was obtained or whether there are any conflicts of interest. It mentions sealed documents and non-disclosure agreements, which suggests there might be more information not available to the public. However, the lack of transparency about these aspects and the absence of a clear methodology or source verification process makes it difficult for readers to fully trust the narrative presented.

Sources

  1. https://techcrunch.com/2025/04/10/canoo-ceo-can-buy-bankrupt-ev-startups-assets-judge-rules/
  2. https://theevreport.com/canoo-bankruptcy-faces-insider-sale-objection
  3. https://www.carscoops.com/2025/04/canoo-accused-of-hiding-assets-during-bankruptcy-sale/
  4. https://www.sfgate.com/tech/article/california-founded-ev-maker-dump-assets-20255786.php
  5. https://www.marketscreener.com/quote/stock/CANOO-INC-57291647/news/Motion-for-Asset-Sale-Approved-for-Canoo-Inc-49584341/