The Director General of Canoo is buying almost all EV’s starting assets from bankruptcy, according to a judicial appearance.
A new CEO -controlled entity, Anthony Aquila, has offered to buy “significantly” all “assets for $ 4 million in cash. The sale will also delete a cano of more than $ 11 million owed to a Aquila -led financial firm, which borrowed money for the beginning in recent months.
The sale proposal comes only six weeks after Canoo presented a bankruptcy of Chapter 7 in Delaware and destroyed his business. The beginning, which was made public in 2020 as part of the joining with a special goal shopping company, never sold more than a small portion of its electric vans for government entities such as NASA, the United States Postal Service and the Defense Department before failing.
Canoo has told the court that from February 24 it had about $ 145 million in assets and $ 175 million in liabilities, and about $ 12 million in cash and equivalent. Other stakeholders may submit “higher and better offers” for the company’s assets before a 28 March deadline, according to a registration.
But the bankruptcy trustee wrote in the presentation that the “best course of action” would be to continue selling in aquila. The trustee mentioned a number of reasons for this, such as the “lack of funding currently available” to support EV production.
He wrote that the failure of other EV beginnings (such as Fisher and Nikola, though he did not specifically name them) has produced a “glut of EV -related assets” available “at fire prices”. He also wrote that Canoo’s property has no money to cover “rents, security costs and the necessary insurance to maintain the integrity of the assets.”
As long as it passes, the new entity of Aquila – called WHS Energy Solutions, Inc. And created in Delaware – will receive Canoo manufacturing equipment, finished vehicles, intellectual property, contracts and other assets. Whs Energy Solutions is not taking any of the Canoo rental, and will not be responsible for any of the claims that other creditors have against Canoo’s property.
Aquila has told the belief in bankruptcy that a “main motivation” for buying assets is “the desire to honor CEO (Canoo) to provide service and support for certain government programs.”
“While the sustainability of all government expenditures is currently unsafe, the buyer is advised by these agencies that if they cannot ensure that the buyer can provide security immediately that he will be able to provide the services and support provided by debtors, programs will be delayed materially and the government will have to begin the process that requires other contractors,” he wrote.
CEO or founders who try to buy their bankruptcy -owned beginnings are not uncommon, even in the world of electric vehicles. In 2023, the former bankrupt start of Ev Lordstown Motors bought most of its assets and started a new company called Landx Motors. But more often than not, the assets are sold to other companies or in auction in pieces.
It is unclear what plans to do Aquila with Canoo’s assets if he is successful in completing the transaction. CEO I Canoo did not respond to a comment request.
Only the financial firm of Aquila and the entities associated with “secured” claims, which means that their debt was supported by Canoo pledged collateral. Debts owed to many other creditors – which include Magna automobile supplier (nearly $ 3 million), and Yorkville financial advisers (which sold millions of shares of Canoo and owed $ 7 million) are behind Aquila’s in line to be paid again.
