The ongoing bankruptcy proceedings for electric vehicle maker Canoo have encountered a significant obstacle. Rival EV trucking company Harbinger has formally objected to the proposed sale of Canoo's assets to its own CEO, Tony Aquila. This objection, filed recently in court, introduces serious allegations that could potentially derail or significantly alter the course of the two-month-old bankruptcy case, adding another layer of complexity to the turbulent EV startup landscape. At the heart of Harbinger's challenge is the accusation that Canoo has not been fully transparent about the assets included in the proposed sale agreement. Specifically, Harbinger contends that Canoo failed to disclose certain valuable assets, thereby potentially undervaluing the package being sold. This lack of transparency, Harbinger argues, undermines the integrity of the bankruptcy sale process, which is designed to maximize value for creditors and stakeholders. The objection suggests that a fair assessment of Canoo's worth cannot be made if key assets are kept off the books or out of sight during the bidding and sale approval stages. A particularly pointed claim within Harbinger's filing relates to assets Canoo reportedly acquired from another struggling EV company, Arrival, which also faced bankruptcy. Harbinger alleges that equipment, intellectual property, or other resources purchased from Arrival were intentionally omitted from the list of assets being transferred to the CEO-led purchasing entity. If true, this could represent a significant hidden value that other potential bidders, including Harbinger itself (which might have an interest as a competitor or creditor), were unaware of. The objection calls for greater scrutiny and a full accounting of all assets, including those originating from the Arrival deal, before the sale is approved. This legal maneuver by Harbinger highlights the intense competition and financial pressures within the electric vehicle sector. Startups like Canoo and Arrival have struggled to navigate the path from concept to mass production amidst supply chain issues, funding challenges, and established automotive giants entering the EV space. Bankruptcies and asset sales have become increasingly common, and disputes over the valuation and disposition of remaining assets are perhaps an inevitable consequence. The outcome of Harbinger's objection will be closely watched, as it could set precedents for how assets are handled in future EV company restructurings. The court must now consider Harbinger's claims and decide whether the sale process needs revision or further investigation. Canoo and its CEO will need to respond to these allegations, potentially providing evidence to counter the claims of hidden assets. This dispute underscores the difficulties in winding down or restructuring complex technology companies, especially when intellectual property and unique manufacturing assets are involved. The resolution will impact not only the immediate parties but also creditor recoveries and the perception of fairness in bankruptcy proceedings within the volatile EV industry.
