A judge has approved the purchase of bankrupt electric vehicle startup Canoo’s assets by the company’s CEO, Anthony Aquila. The decision, handed down by Judge Brendan Shannon, allows Aquila to acquire the firm’s remaining assets for approximately $4 million in cash.
Judge Shannon made the ruling after reviewing several limited objections that were raised during the bankruptcy proceedings. He stated he was satisfied the sale process was fair, noting Aquila was the sole party to submit a formal bid.
Aquila intends to use the acquired assets to sustain Canoo’s existing commitments servicing high-profile customers such as NASA and the U.S. Department of Defense, both of which previously purchased vehicles from the startup prior to its financial troubles.
Canoo’s fall to bankruptcy marks the latest in a string of setbacks among electric vehicle startups. Companies like Fisker, Lordstown Motors, and Nikola have similarly encountered severe financial issues in recent years. Among these, Canoo is not the first to see its founder or CEO attempt to regain control through bankruptcy auctions—Lordstown’s ex-CEO Steve Burns previously acquired his former firm’s assets, and Nikola’s founder Trevor Milton, newly pardoned, is also making a similar move to reclaim his startup.
During the legal proceedings, Canoo attorney Mark Felger revealed that about eight separate entities had signed confidentiality agreements and evaluated potential purchases of Canoo’s assets. Only a handful approached making formal bids, including one party whose foreign ownership raised concerns under the Committee on Foreign Investment in the United States (CFIUS).
Significantly, the electric-truck startup Harbinger, founded by former Canoo employees who had left the company in 2021, nearly submitted a bid and actively objected to the asset sale. Harbinger alleged Canoo had hidden key company assets from potential buyers, undermining transparency in the bidding process. Lawyers representing Aquila firmly dismissed these accusations as baseless.
An ongoing lawsuit between Canoo and Harbinger over alleged trade secret misappropriation further complicated matters. According to Harbinger’s attorney John Morris, Canoo has never clearly defined which trade secrets it believes Harbinger stole—even under sealed documents in court. Harbinger claimed that ambiguity in the lawsuit significantly impacted how prospective buyers could adequately assess the company’s value, due to uncertainty over the potential outcome of this legal dispute.
Morris also criticized a clause within the asset sale contract giving Aquila exclusive power over any future settlement negotiations in the trade secrets case. Expressing concerns over Aquila’s potential conflicts of interest, he argued the bankruptcy trustee had failed in fulfilling his fiduciary responsibilities. However, Judge Shannon disagreed, stating that Aquila’s involvement and connections to Canoo had been sufficiently disclosed and vetted. Shannon highlighted the detailed negotiations between Aquila and the trustee, referencing several weeks of offers and counteroffers, as evidence of a comprehensive and thoroughly executed process.
Additional minor objections voiced by businesses already involved financially with Canoo or holding leased equipment have mostly reached the stage of resolution, according to Felger.
With this judgment, the sale is cleared to advance, positioning Aquila to continue plans for restructuring Canoo’s existing technology and remaining contracts.
