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Canoo's CEO is buying the bankrupt EV startup's assets | TechCrunch
Summary
- CEO Anthony Aquila is purchasing Canoo's assets
Explain: Aquila, through a new entity, aims to buy nearly all the assets of the defunct electric vehicle startup Canoo for $4 million, which includes settling an $11 million debt owed to his financial firm.
- Canoo filed for Chapter 7 bankruptcy
Explain: Just six weeks prior, Canoo sought Chapter 7 liquidation in Delaware after failing to sell a significant number of electric vans since going public in 2020.
- Canoo's financial situation details
Explain: As of February 24, Canoo reported $145 million in assets against $175 million in liabilities, leading to a cash crisis that prompted the bankruptcy filing.
- Sale proposal assessed as the best option
Explain: The bankruptcy trustee recommended proceeding with Aquila's offer due to the lack of financing for EV manufacturing amidst an oversaturated market.
- WHS Energy Solutions, Inc. created for the acquisition
Explain: Aquila's new company, WHS Energy Solutions, will acquire Canoo's manufacturing equipment, vehicles, and intellectual property but won't assume any liabilities or leases.
- Aquila's motivation for purchasing Canoo's assets
Explain: Aquila expressed a desire to uphold Canoo's commitments to government programs, emphasizing the importance of timely service continuity for ongoing projects.
- Common practice for bankrupt startup founders
Explain: The trend of founders buying back assets after bankruptcy is prevalent, similar to the actions of the former CEO of Lordstown Motors, who started a new company post-bankruptcy.
- Uncertain future for Canoo's assets
Explain: It remains unclear what Aquila intends to do with the acquired assets, as there has been no comment from him regarding future plans.
- Secured claims lead in creditor payment hierarchy
Explain: Aquila's financial firm holds secured claims against Canoo, which positions them ahead of other creditors waiting for reimbursement.
Created At
06 Mar 2025, 09:39 AM