A mysterious London-based investor has filed an objection in a Delaware bankruptcy court to stop the sale of electric vehicle startup Canoo Inc.’s assets to its current CEO. The move introduces a new complication in an already complex bankruptcy process for the struggling EV manufacturer.
According to court documents, the investor raised concerns that the proposed transaction lacks transparency and could unfairly benefit the company’s leadership rather than creditor interests. The investor claims that the sale might not reflect a fair market value and could constitute a conflict of interest, as it involves a direct transaction between the bankrupt company and its own executive.
Canoo, once considered a promising player in the electric vehicle market, has faced multiple setbacks, including missed production targets and financial instability. Despite partnerships with major retailers like Walmart, the company filed for bankruptcy amid continued fiscal pressures.
The judge in the Delaware court has yet to rule on the objection. Legal experts say the challenge could delay or alter the outcome of the asset sale, depending on the court’s determination of the claims made by the investor.
The case highlights ongoing scrutiny and legal complexities surrounding corporate asset sales during bankruptcy, especially when insiders are involved in buyout proposals.
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