Canoo Inc. Announces Chapter 7 Bankruptcy Filing

Rhea-AI Summary

Canoo Inc. (NASDAQ: GOEV) announced its voluntary filing for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court for Delaware on January 17, 2025. The company will immediately cease operations, with a court-appointed trustee overseeing asset liquidation and creditor distributions.

Despite successful deliveries to notable clients including NASA, Department of Defense, USPS, State of Oklahoma, and agreements with Walmart, Canoo failed to secure important financial support from the U.S. Department of Energy's Loan Program Office. Recent attempts to obtain foreign capital were also unsuccessful, leading the Board to file for insolvency.

CEO Tony Aquila, one of the company's largest investors, expressed disappointment and gratitude to employees and key customers. The company will work with the Delaware Bankruptcy Trustee during the liquidation process.

Positive

• Successfully delivered products to major clients (NASA, DOD, USPS, Oklahoma)
• Had established agreements with Walmart

Negative

• Filing for Chapter 7 bankruptcy
• Complete cessation of operations
• Failed to secure DOE loan funding
• Unsuccessful attempts to obtain foreign capital
• Total liquidation of company assets

JUSTIN, Texas, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Canoo Inc. (Nasdaq: GOEV), (the "Company"), a high-tech advanced mobility and energy company, today announced that it has filed a voluntary petition for relief under Chapter 7 of the U.S. Bankruptcy Code. The filing, made with the U.S. Bankruptcy Court for Delaware, will result in the federal appointment of a Bankruptcy Trustee to oversee the liquidation of the Company’s assets and the distribution of proceeds to creditors.

Despite being American-made, successfully delivering to such esteemed organizations as NASA, the Department of Defense (“DOD”), The United States Postal Service (“USPS”), the State of Oklahoma and having agreements with Walmart and others, Canoo has unfortunately been unable to secure financial support from the U.S. Department of Energy’s (“DOE”) Loan Program Office. Recently, the company’s executives were in discussions with foreign sources of capital. In light of the fact that these efforts were unsuccessful, the Board has made the difficult decision to file for insolvency.

Tony Aquila, one of the company’s largest investors and Chairman and CEO said, “We would like to thank the company’s employees for their dedication and hard work. We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (“USPS”), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”

As a result of this filing, Canoo regrets to inform all stakeholders that it will cease operations effective immediately. A court appointed trustee will manage the liquidation of the company’s assets and our team will collaborate closely with the Delaware Bankruptcy Trustee to assist with the process.

FAQ

What happens to GOEV shareholders after Canoo's Chapter 7 bankruptcy filing?

In a Chapter 7 bankruptcy, shareholders typically lose their entire investment as they are last in line for asset distribution after creditors are paid.

When did Canoo (GOEV) file for Chapter 7 bankruptcy?

Canoo filed for Chapter 7 bankruptcy on January 17, 2025.

What led to Canoo's (GOEV) bankruptcy filing?

Canoo's bankruptcy was primarily due to failure to secure financial support from the DOE's Loan Program Office and unsuccessful attempts to obtain foreign capital.

What happens to Canoo's (GOEV) contracts with Walmart, NASA, and other government agencies?

These contracts will likely be terminated as Canoo ceases operations immediately, with assets being liquidated under Chapter 7 bankruptcy proceedings.

What is the role of the bankruptcy trustee in Canoo's (GOEV) Chapter 7 filing?

The court-appointed trustee will oversee the liquidation of Canoo's assets and manage the distribution of proceeds to creditors.