In a significant turn of events for the troubled EV startup, a judge has approved the Canoo CEO’s proposal to purchase the company’s remaining assets, marking another chapter in the wave of bankruptcies rocking the electric vehicle industry.
At a hearing on Wednesday, Judge Brendan Shannon ruled that Canoo CEO Anthony Aquila could move forward with acquiring the defunct startup’s assets for roughly $4 million in cash. While there were some objections during the proceedings, Shannon confirmed that the bidding process was fair and that Aquila was the only party to make a formal offer.
Aquila Aims to Keep Serving Major Clients
Aquila’s acquisition plan includes continuing services for key clients like NASA and the U.S. Department of Defense, both of which had previously purchased a small number of Canoo vehicles. His legal team emphasized that the sale allows Canoo’s technologies and assets to be preserved while fulfilling commitments to government partners.
Canoo’s downfall follows the demise of several other EV startups, including Fisker, Lordstown Motors, and Nikola—all of which once symbolized the promise of the electric vehicle revolution. Notably, Canoo’s situation mirrors similar scenarios where former executives returned to buy company assets during bankruptcy. For instance, Lordstown’s founder Steve Burns acquired his company’s assets, and Nikola’s ex-CEO Trevor Milton is attempting a similar move.
More Than Just Aquila Showed Interest
Despite Aquila ultimately sealing the deal, Canoo’s legal team revealed that eight different groups signed non-disclosure agreements to evaluate the asset package. While a few came close to placing bids, none matched Aquila’s offer. One potential bidder reportedly raised national security flags due to foreign ownership, though details remained undisclosed.
Among the nearly-interested parties, Harbinger, a newer EV startup focused on electric trucks, voiced strong objections. Harbinger accused Canoo of concealing key assets from the public bidding process and claimed the sale was fundamentally flawed. In response, Aquila’s attorneys described the claims as baseless and unsupported.
Interestingly, Harbinger’s founding team had previously worked at Canoo before branching off in 2021. Canoo later sued them in 2022, alleging they stole trade secrets—a case that remains unresolved and is now central to the bankruptcy asset sale.
Lawsuit Against Harbinger Becomes a Sticking Point
The legal dispute with Harbinger became a key point of contention in the sale. The bankruptcy trustee believes that if Canoo wins the lawsuit, it could recover substantial funds and potentially block Harbinger from using sensitive information.
However, Harbinger’s lawyer, John Morris, challenged the legitimacy of the trade secret claims, arguing that even after two years in court, Canoo hasn’t clearly identified what was supposedly stolen—whether publicly or confidentially.
Morris further criticized a clause in the sale agreement granting Aquila the final say on any settlement related to the lawsuit. He claimed this created a conflict of interest, undermining the trustee’s fiduciary responsibility to creditors and the estate.
Judge Shannon disagreed. He noted that negotiations between Aquila and the trustee involved weeks of back-and-forth and were handled transparently. He concluded that the trustee had run a legitimate process and that the sale represented a good-faith effort to recover value.
Outstanding Creditor Disputes Near Resolution
Several other objections to the sale came from companies still owed money or holding onto Canoo equipment. Canoo’s attorney Mark Felger told the court that those issues are being addressed, and most are already close to being resolved.
Judge Shannon’s final order confirms that WHS Energy Solutions—a company controlled by Aquila—can now move forward with the acquisition. The decision brings a close to one phase of Canoo’s collapse while opening a new chapter for its future under familiar leadership.
