Canoo, a failing electric vehicle manufacturer, has transitioned into bankruptcy after moving its headquarters from California to Texas. Trustee Jeoffrey Burtch is attempting to liquidate Canoo's assets amidst a saturated EV market, seeing low valuations. A controversial proposal suggests selling Canoo's property for just $4 million to its former CEO Tony Aquila, raising questions about proper asset marketing and ethical considerations due to potential insider dealings. Rival Harbinger Motors has voiced skepticism regarding the adequacy of these liquidation efforts.
Canoo's liquidation is likely to be another cheap deal: Burtch wrote in his filings that he'd agreed to sell the vast majority of Canoo's property for just $4 million, to none other than the defunct company's CEO, Tony Aquila.
It's not unheard of for an insider to buy up assets in a Chapter 7 proceeding, Jonathan Shenson, a bankruptcy lawyer at Los Angeles' Greenberg Glusker LLP, told SFGATE on the phone.
For now, Aquila is the only deal in town, but did the Trustee do enough to sufficiently market test the value of the assets?
The market, Burtch wrote in the filing, has 'a glut of EV related assets, particularly generic machinery adaptable for other uses, available at fire-sale prices.'
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