Electrical trucking firm Harbinger has filed an objection to the sale of Canoo’s belongings to its CEO, doubtlessly throwing a wrench into the two-month-old chapter case.
Harbinger’s objection, filed late Friday, accuses Canoo of hiding sure belongings from the sale course of, together with what the startup bought from one other bankrupt EV firm, Arrival. It additionally accuses Canoo of itemizing belongings that Harbinger believes the startup didn’t really personal (although it didn’t specify which of them). Harbinger stated it got here to this dedication after it thought-about shopping for the belongings and gained entry to the digital information room for potential bidders.
What’s extra, Harbinger says the sale course of has to date “unfairly favored Mr. Aquila,” referring to Canoo’s CEO Anthony Aquila, who reached an settlement to purchase the belongings in early March. Harbinger claims the chapter trustee accepted Aquila’s provide with out broadly advertising and marketing the sale of the belongings or acquiring an appraisal.
The objection is the most recent twist within the rocky relationship between Harbinger and Canoo. Harbinger was created by a handful of former Canoo staff in 2021. Canoo sued Harbinger in late 2022, alleging that these staff absconded with trade secrets.
That commerce secret case was nonetheless lively when Canoo filed for chapter in January. The truth is, one of many issues Aquila is buying together with the belongings is an curiosity in any settlement Harbinger could wind up paying to Canoo.
One explicit clause of the acquisition settlement states that Aquila and the trustee have efficient approval over any settlement within the Harbinger case. Harbinger argues this might violate the Division of Justice’s handbook for Chapter 7 trustees.
The trustee within the case, Jeoffrey Burtch, and a lawyer for Canoo didn’t instantly reply to a request for remark. Attorneys representing Aquila and Harbinger declined to remark.