CANOO CEO purchases the startups of the bankruptcy EV
CANOO CEO purchases almost all EVs from bankruptcy, according to a court presentation.
A new entity -controlled entity, Anthony Aklala, offered to buy “each of the assets for $ 4 million in cash. The sale will also be cleared by cleaning a set of $ 11 million debt owed a financial company run by Akwala, which has lended money to start operating in recent months.
The sale proposal comes just six weeks after the Cano submitted to liquidate bankruptcy in Chapter 7 in Delaware and ended its work. The startup, which was published in 2020 as part of a merger with a special purpose acquisition company, has not been sold more than a handful of its electric trucks for government entities such as NASA, the US Post service, and the Ministry of Defense, before its failure.
Canoo told the court that, as of February 24, it had about $ 145 million of assets, $ 175 million of obligations, and about $ 12 million in cash and its equivalent. Other interested parties can make “higher and better offers” to the company’s assets before the deadline on March 28, according to a report.
But bankruptcy secretaries wrote in the deposit that “the best path of work” is to move forward in selling to Aklala. The guardian cited a number of reasons for this, such as “lack of financing currently available” to support EV manufacturing.
He wrote that the failure of other EV starters (such as Fisker and Nikola, although he did not mention them specifically) had produced “an abundance of relevant” EV “” available “at fire rates.” He also wrote that Canoo has no money to cover “rents, security costs and insurance needed to maintain the safety of assets.”
As long as it continues, the new Aquala entity – which is called Whs Energy Solutions, will receive Inc. Which was created in Delaware – Canoo Manufacturing Equipment, complete vehicles, intellectual property, contracts, and other stocks and assets. Whs Energy Solutions does not take care of any of the Canoo rental contracts, and will not be responsible for any of the claims that other creditors against Canoo.
Aquila, a bankruptcy, told the “main motivation” for the purchase of assets is “the desire for honor in honor, CEO [Canoo’s] Commitment to provide service and support to some government programs. ”
“Although the feasibility of all government spending is currently incredible, the buyer has been presented by these agencies that unless it is possible to ensure that the buyer can provide an affirmation immediately that he will be able to continue providing services and support provided by debtors, and the programs will be delayed financially.
Executive chiefs or founders who are trying to buy the assets of bankrupt startups are not uncommon, even in the world of electric cars. In 2023, the former CEO of EV Startup Lordstow Motors was purchased Most of its origins A new company called LandX Motors began. But most of the time, assets are sold to other companies or are sold in public auction.
It is not clear what Aquila is planning to do with Canoo’s assets if he succeeds in completing the transaction. Canoo CEO did not respond to the comment.
Only the financial company in Aquila and the relevant entities that have made “guaranteed” claims, which means that its debts are supported by Canoo. The debts due to many other creditors – which include the Magna Car Supplier (owed by about $ 3 million), and financial advisors Yorkville (who sold millions of Canoo shares and deserved $ 7 million) behind Aquila in the queue for their salaries.
