.”
“But they’re the ones who stepped up, right and we negotiated hard. We went back and forth a dozen times on that agreement,” he said. Felger also repeated the trustee’s claims, made in earlier filings and testimony, that the cost of maintaining Canoo’s assets — especially its battery packs — was costing too much money. Letting a sale process drag out for too long could damage the value of the estate, he said.
Judge Shannon, after hearing the arguments from Angelo, Felger, and a lawyer for Aquila, ruled swiftly against Garson. He said the financier lacked standing to properly argue his motion to vacate the sale, since he is not owed any money by Canoo and did not submit a formal bid before the deadline.
“I am sympathetic to Mr. Garson’s frustration at what I sense and am satisfied is a genuine interest to provide a superior bid and purchase these assets,” Shannon said. “But it was a complex process run by the chapter seven trustee that I don’t think Mr. Garson had a full handle on exactly what the process was, and what was necessary in order to fully engage in that process.”
Shannon also pointed out it was made clear to the trustee from the beginning who Aquila was, and that his role as CEO alone did not preclude him from buying his company’s assets.
“I came into the process late and had hoped for the opportunity to participate and enter my bid. While the outcome wasn’t what I’d hoped for, I respect the court’s decision and want to extend my congratulations to Tony Aquila,” Garson said in a statement to TechCrunch.
This story has been updated with a statement from Charles Garson.
