Canoo, a U.S.-based electric vehicle (EV) manufacturer, has filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code, the company announced Friday.
Chapter 7 bankruptcy is a legal process that involves the complete liquidation of a company’s assets to repay creditors.
Unlike Chapter 11, which allows companies to restructure and continue operations, Chapter 7 typically signals the end of a business. A bankruptcy trustee, appointed by the court, oversees the sale of the company’s assets and the distribution of the proceeds to creditors.
“The filing, made with the U.S. Bankruptcy Court for the District of Delaware, will result in the federal appointment of a bankruptcy trustee to oversee the liquidation of the…
