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The sale is no longer merely something Canoo’s CEO “can buy.” It was approved, closed and later affirmed on appeal. Delaware bankruptcy courts approved the transfer of most of Canoo’s assets to WHS Energy Solutions, an entity controlled by Canoo CEO Anthony Aquila. The transaction was an asset sale from Canoo’s Chapter 7 estates—not a purchase of Canoo stock or a confirmed restart of the EV maker.
The sale has already happened. On April 9, 2025, a Delaware bankruptcy judge approved the sale of most of Canoo’s bankruptcy-estate assets to WHS Energy Solutions, an entity controlled by Canoo CEO Anthony Aquila. The transaction closed on April 11, 2025, and the U.S. District Court for the District of Delaware affirmed the sale order on March 17, 2026.
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This was an asset sale, not a purchase of Canoo’s publicly traded stock and not, by itself, a restart of the Canoo vehicle business. The assets came from Canoo’s Chapter 7 liquidation estates and included equipment, vehicles, intellectual property, contracts, inventory and related property.
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Bankruptcy Judge Brendan Shannon approved an agreement under which WHS Energy Solutions would acquire substantially all of the relevant Canoo estate assets. WHS is controlled by Aquila, who was Canoo’s chief executive officer.
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Reported transaction terms included approximately $4 million in cash. The agreement also addressed approximately $11 million in debt that Canoo owed to an Aquila-controlled financial firm. The asset package covered property associated with Canoo’s former electric-vehicle operations, including:
- Manufacturing machinery and equipment in Texas, Oklahoma and California;
- Completed vehicles;
- Intellectual property;
- Contracts and related rights;
- Inventory; and
- Other assets held by the bankruptcy estates.
The documents do not establish that Aquila bought Canoo’s shares. They describe WHS Energy Solutions buying assets from the Chapter 7 estates. That distinction matters: a company’s assets can be sold in bankruptcy even when its former public-company equity is not acquired or revived.
Why Canoo was in Chapter 7
Canoo and several subsidiaries filed for Chapter 7 bankruptcy on January 17, 2025. Chapter 7 is a liquidation process. Unlike a Chapter 11 restructuring, in which a debtor may continue operating while attempting to reorganize, Canoo had ceased operations and the case centered on a trustee taking control of the estates and liquidating their assets under the Bankruptcy Code.
That procedural posture is why the transaction should not be described as a conventional acquisition of a going EV company. The trustee—not Canoo’s former management acting as an operating company—controlled the liquidation process and sought to convert the estates’ property into recoveries for creditors.
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Why the insider sale was allowed
The buyer’s relationship with Canoo was central to the objections. Aquila was Canoo’s CEO, and the purchasing entity was controlled by him. The court therefore was not reviewing an ordinary arm’s-length transaction between unrelated companies.
Even so, the bankruptcy court concluded that the trustee had conducted a fair, good-faith sale process and had obtained a significant offer. Contemporaneous reporting indicated that as many as eight potential parties signed nondisclosure agreements and evaluated the assets, but no competing bidder presented a bid at the sale hearing.
The accurate takeaway is not that Aquila was unrelated to Canoo. It is that the relationship was disclosed, the trustee negotiated with the insider-controlled buyer, the sale process was examined in court, and Judge Shannon found sufficient grounds to approve the transaction over the objections.
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What Harbinger Motors objected to
Harbinger Motors, an electric-truck startup founded by former Canoo employees, challenged the sale. Its principal concern involved a provision in the asset purchase agreement concerning pending trade-secret litigation between Canoo and Harbinger.
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Harbinger objected to giving the buyer consent rights over a possible settlement of that litigation. Its position was that Aquila’s interests could differ from the interests of the bankruptcy estate and its creditors, potentially creating a conflict over how the litigation should be resolved.
Those were Harbinger’s objections, not findings that the underlying trade-secret allegations were proven. The researched court record establishes that Harbinger raised issues involving alleged trade-secret misappropriation and the agreement’s litigation-related consent rights; it does not establish the merits or final outcome of the underlying claims.
How the court treated the litigation rights
The Bankruptcy Court overruled Harbinger’s objection and approved the agreement. The litigation rights were treated as an estate asset with economic value. Rather than leave that value entirely uncertain while the liquidation continued, the trustee used the transaction to obtain a known recovery while preserving the possibility of additional recovery from the litigation.
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The sale closed—and the appeal failed
The transaction closed April 11, 2025. The sale order treated WHS as a good-faith purchaser and extended the protections associated with Section 363(m) of the Bankruptcy Code. In general terms, those protections are intended to preserve the finality of a qualifying bankruptcy sale for a good-faith purchaser, subject to the statute and the specific order.
Harbinger appealed the sale order. On March 17, 2026, the U.S. District Court for the District of Delaware affirmed the Bankruptcy Court’s decision. The District Court concluded that the Bankruptcy Court had not erred in approving the agreement and accepted the trustee’s business justification for converting uncertain litigation and other asset value into a known recovery with potential additional upside.
What this means for Canoo
- Canoo’s assets changed hands: WHS acquired assets from the bankruptcy estates after court approval and closing.
- The public company was not bought back: The transaction was not a purchase of Canoo stock.
- The sale did not prove an operational restart: The available record does not confirm that Aquila resumed Canoo production, restarted the former company or preserved particular customer programs.
- The insider relationship did not automatically block the sale: The court evaluated the disclosed relationship alongside the trustee’s process, competing-bid history, objections and expected recovery.
- The Harbinger appeal did not overturn the transaction: The District Court affirmed the sale order in March 2026.
What remains unresolved
The approval, closing and District Court affirmance resolve the reported challenge to the sale itself. They do not, on the available record, resolve every issue connected with the former Canoo estates.
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In particular, the supplied court record does not establish whether a later order changed the status of the underlying Harbinger litigation or whether a later distribution was made to creditors after March 17, 2026. It is therefore too broad to say that every related dispute has ended or that all creditors have received a final recovery.
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Bottom line
Anthony Aquila’s company, WHS Energy Solutions, was permitted to buy most of Canoo’s bankruptcy assets despite Aquila’s position as Canoo’s CEO. The sale was approved after the trustee’s process and the objections were considered, closed in April 2025, and survived Harbinger’s appeal in March 2026. It was a court-approved liquidation asset sale—not a purchase of Canoo’s stock and not verified evidence that Canoo’s EV production business has been revived.
Frequently Asked Questions
Did Anthony Aquila buy Canoo?
No. The verified transaction was a sale of assets from Canoo’s Chapter 7 bankruptcy estates to WHS Energy Solutions. It was not a purchase of Canoo’s publicly traded shares.
How much did WHS Energy Solutions pay for Canoo’s assets?
The sale included approximately $4 million in cash, along with treatment of approximately $11 million in debt Canoo owed to an Aquila-controlled financial firm. The overall recovery analysis later described by the District Court exceeded $17 million and also preserved the possibility of additional recovery.
When did the Canoo asset sale close?
The Bankruptcy Court approved the sale on April 9, 2025, and it closed on April 11, 2025. The U.S. District Court for the District of Delaware affirmed the sale order on March 17, 2026.
Did the sale restart Canoo’s EV business?
The available record does not verify that Canoo resumed production, restarted as an operating public company or preserved particular customer contracts. The established event is the sale of bankruptcy-estate assets.
Why did Harbinger Motors oppose the sale?
Harbinger Motors objected to provisions involving consent rights over a possible settlement of pending trade-secret litigation. The courts rejected the objection to the sale, but the supplied record does not establish the merits or final resolution of the underlying litigation.
The Bottom Line
Bottom line: WHS Energy Solutions, controlled by former Canoo CEO Anthony Aquila, bought substantially all of the relevant Canoo bankruptcy-estate assets after a Delaware court approved the insider transaction. The sale closed April 11, 2025, and was affirmed on appeal March 17, 2026. It did not constitute a purchase of Canoo’s public shares or establish that vehicle production restarted.
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