A little-known London-based investor has stepped into the spotlight, asking a Delaware bankruptcy judge to halt the sale of Canoo’s assets to its CEO, calling the process deeply flawed.
Charles Garson, a U.K. investor with no clear ties to the electric vehicle startup, recently offered $20 million for Canoo’s assets, according to court filings. Garson’s lawyer filed a motion on Friday to overturn the sale, arguing that his offer was far better than Canoo CEO Anthony Aquila’s $4 million cash bid. Aquila’s proposal also included canceling about $11 million in debt Canoo owed to his own financial firm.
Garson claims the bankruptcy trustee told him he had until late April to finalize his offer. However, just two days later, the trustee moved ahead with the sale hearing and closed the deal with Aquila. The sale officially wrapped up on April 11. So far, the trustee has not responded to requests for comment.
Garson isn’t alone in objecting. Harbinger Motors, an EV truck company founded by former Canoo employees, also challenged the sale. Although a bankruptcy judge dismissed Harbinger’s objection, the company has since filed an appeal.
Little is known about Garson. According to his LinkedIn profile, he is based in London and works in real estate investments. U.K. business records list him as a director of Garland Holdings Limited, a real estate investment company.
The motion to vacate leaves many questions unanswered. It doesn’t explain why Garson is interested in Canoo or whether he represents a larger group of investors. While Garson submitted a declaration and 23 exhibits supporting his motion, all documents were filed under seal. His lawyer has not commented publicly.
Garson’s motion claims he relied on communications with the trustee, believing he had sufficient time to complete his superior offer. As a result, he didn’t formally object to the sale or submit a competing bid in time. Instead, he continued refining his proposal and seeking clarifications.
“Despite having a clearly superior offer practically thrown at him, the Trustee sought court approval of the transaction with Aquila,” the motion states. Meanwhile, a lawyer representing Aquila has also declined to comment.
Earlier this month, a Canoo attorney revealed that eight parties had signed non-disclosure agreements to review the startup’s assets. However, only a handful moved close to submitting bids. One group raised concerns due to potential issues with the Committee on Foreign Investment in the United States (CFIUS), though it’s unclear if Garson’s bid triggered those concerns.
For now, Canoo’s tangled bankruptcy proceedings remain in flux — and Garson’s mysterious entry only deepens the intrigue.
