Electric trucking company Harbinger has thrown a wrench into the bankruptcy case of rival startup Canoo, filing an objection to the sale of Canoo's assets to its CEO, Anthony Aquila. The objection, filed late Friday, accuses Canoo of hiding certain assets from the sale process and unfairly favoring Aquila's bid.

According to Harbinger, Canoo failed to disclose assets it acquired from another bankrupt EV company, Arrival, and listed assets that Harbinger believes the startup does not actually own. Harbinger claims it discovered these discrepancies after gaining access to the virtual data room for potential bidders, as it had considered purchasing the assets itself.

Harbinger's objection also takes issue with the sale process, alleging that the bankruptcy trustee accepted Aquila's offer without widely marketing the sale of the assets or obtaining an appraisal. This, Harbinger argues, has unfairly favored Aquila and may violate the Department of Justice's handbook for Chapter 7 trustees.

The objection is the latest development in the complex and contentious relationship between Harbinger and Canoo. Harbinger was founded by former Canoo employees in 2021, and Canoo subsequently sued Harbinger in late 2022, alleging that those employees had stolen trade secrets. The trade secret case was still active when Canoo filed for bankruptcy in January.

Interestingly, the purchase agreement between Aquila and the trustee includes a clause that gives them effective approval over any settlement in the Harbinger case. This has raised concerns that Aquila may be able to exert undue influence over the outcome of the trade secret dispute, potentially benefiting from the sale of Canoo's assets.

Neither the trustee, Jeoffrey Burtch, nor a lawyer for Canoo responded to requests for comment. Lawyers representing Aquila and Harbinger also declined to comment on the matter.

The implications of Harbinger's objection are significant, potentially disrupting the bankruptcy case and throwing into question the validity of the asset sale. As the case unfolds, it will be important to watch how the court responds to Harbinger's allegations and whether the sale of Canoo's assets will be allowed to proceed.

In the broader context, this development highlights the complexities and challenges of the electric vehicle startup ecosystem. As companies like Canoo and Harbinger navigate the cutthroat world of EV innovation, they must also contend with the legal and financial complexities of bankruptcy and intellectual property disputes.