In a twist that briefly threatened to derail the sale of Canoo’s assets, a surprise bid from a previously unknown U.K. financier has been struck down by the judge overseeing the Canoo bankruptcy case.
At a Tuesday hearing, Judge Brendan Linehan Shannon ruled that Charles Garson, the financier who emerged late in the process, had no legal standing to challenge the sale of Canoo’s assets to its CEO, Tony Aquila. While Garson claimed he was willing to offer up to $20 million to buy the company’s remaining assets, he missed the official bid deadline and failed to provide details about where the funds would come from.
That lack of transparency prompted concerns from the bankruptcy trustee, who flagged the possibility that Garson’s bid might be blocked by the Committee on Foreign Investment in the United States (CFIUS). The judge ultimately sided with the trustee and Canoo’s legal team, reinforcing that Garson never formally entered the process and could not ask for the sale to be reversed.
A Missed Chance and a Rejected Appeal
Garson’s attorney, Jason Angelo, argued that his client misunderstood the timeline, believing he had until the end of April to submit a formal offer. He positioned the attempt as a “David versus Goliath” effort, suggesting Garson was simply trying to present a better deal and prevent what he called an unfair insider sale to the CEO.
But the trustee’s legal counsel, Mark Felger, pushed back firmly. He pointed to months of clear communication and email exchanges that made the bidding process and timeline transparent. Felger also emphasized that the trustee negotiated multiple times with Aquila’s team to get the best outcome for creditors, despite the optics of selling assets to the company’s own CEO.
The judge agreed, noting that Garson, while perhaps sincere in his intentions, had failed to engage with the process appropriately. “I don’t think Mr. Garson had a full handle on exactly what the process was,” Judge Shannon said. He also highlighted that Aquila’s role as CEO did not disqualify him from bidding — a fact disclosed from the outset.
The only remaining opposition now comes from Harbinger Motors, an electric truck startup founded by former Canoo employees. Harbinger initially objected to the sale in April, and although the judge rejected that motion, the company has since filed an appeal.
What Happens Next in Canoo’s Wind-Down?
As the Canoo bankruptcy case moves forward, this ruling clears the way for Tony Aquila to officially acquire the EV startup’s remaining assets. The trustee emphasized that any delay in the sale would have risked further devaluing the estate, especially given the high maintenance costs of Canoo’s battery technology.
Garson, for his part, acknowledged the court’s decision in a brief post-hearing statement. “While the outcome wasn’t what I’d hoped for, I respect the court’s decision and want to extend my congratulations to Tony Aquila.”
With the court upholding the sale and no further bids in play, Canoo’s bankruptcy process now hinges on the resolution of Harbinger’s appeal — a final hurdle before the company’s assets can fully transfer and the estate begins to wind down.
