The judge overseeing Canoo’s bankruptcy case has denied a move by an unidentified financier to derail the sale of the EV startup’s assets. In a hearing on Tuesday, Judge Brendan Linehan Shannon ruled that the financier, a man named Charles Garson based in the U.K., did not have the right to request the sale to Canoo’s CEO be canceled. Garson had expressed his willingness to pay up to $20 million for Canoo’s assets, but he missed the deadline to formally submit the bid. Additionally, Garson did not clarify the source of the funds, leading to concerns from the bankruptcy trustee about potential blocks from the Committee on Foreign Investment in the United States.
The last hurdle to the asset sale is from Harbinger Motors, a commercial electric trucking startup founded by former Canoo employees. Harbinger had objected to the sale before it was completed in April. Although the judge dismissed Harbinger’s objection, the company has since appealed the ruling. Jason Angelo, Garson’s attorney, positioned his client’s effort to disrupt the sale as a “David versus Goliath” situation. During the hearing, Angelo argued that conversations between Garson and the bankruptcy trustee, submitted under seal to the court, led Garson to believe he had until the end of April to formalize a bid. Angelo reiterated the claims from Garson’s initial filing that the sale was unjust because the assets ended up with Canoo’s CEO, Anthony Aquila.

Judge Shannon promptly rejected Garson’s appeal, citing the financier’s lack of standing to challenge the sale due to not being owed any money by Canoo and failing to meet the bid submission deadline. Shannon acknowledged Garson’s genuine intention to present a superior bid for the assets but emphasized the complexity of the process overseen by the trustee.
In a statement to TechCrunch, Garson expressed his disappointment at the outcome but respected the court’s decision and congratulated Tony Aquila on the successful acquisition of the assets. This development concludes the chapter of the bankruptcy case involving Canoo’s asset sale.
This story has been updated with a statement from Charles Garson.