Investor Challenges Canoo Asset Sale, Proposes Higher Bid

Charles Garson, a U.K. based investor, has announced his decision to sue. His goal is to cut through the noise and confusion in bankruptcy court over the electric vehicle startup Canoo. Garson, who has no apparent ties to the company, recently offered $20 million for Canoo’s assets and filed a motion to halt the sale process being directed by Canoo’s CEO, Anthony Aquila.

Garson filed an expert declaration with a Delaware bankruptcy judge, corroborating his testimony and bolstering his motion to vacate the sale agreement. This declaration contains 23 exhibits laying out his claims and objections to the sale of assets. As the investor has more recently called the current sale process “fundamentally flawed,” so far though, he’s kept the details of his motivation for Canoo and what may be the involvement of other investors close to his vest.

Wanting to be a serious contender, the bankruptcy trustee informed Garson that they would entertain his $20 million offer. So, he has until the end of April to nail down those specifics. This new proposal is said to be “far superior” to CEO Anthony Aquila’s $4 million cash bid. He was planning to buy the fringes of that company’s business with that bid.

Like Garson’s high offer, his story is hardly known. A quick search reveals little in public record about his background or the investments he’s made elsewhere. This opens up a whole world of questions concerning his motivations and monetary competence.

Following Garson’s filing, his attorney quickly filed a motion to vacate the sale. Among other things, they raised serious concerns about the transparency of the new, controversial bidding process. The motion overlooks key context regarding Garson’s personal interest in Canoo. It’s doing a poor job of explaining whether any of the other 28 investors are backing his offer.

“flawed” – Charles Garson’s filing

The bankruptcy proceedings have raised eyebrows within the investment community, particularly due to Garson’s unexpected emergence as a contender for Canoo’s assets. The lack of available information regarding his business history and intentions adds an element of intrigue to this developing story.