Date: Sep 29, 2014 Author: Joseph Checkler Source: Wall Street Journal (
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The exact circumstances behind Vision Industries Corp.VIICQ 0.00%'s Wednesday bankruptcy filing are still a little unknown, unlike the people directly and tangentially associated with the hybrid vehicle maker.
About five years ago, then-Gov. Arnold Schwarzenegger touted the company's zero-emission semi-tractor trailer outside the California State Capitol.
"This is very exciting, this truck that is behind me here," Mr. Schwarzenegger said, fumbling for a piece of paper from his pocket to remind himself of its name.
An approving nod from Vision Chief Executive Martin Schuermann—who used to lead the company that produced Arnold's "Terminator 3″—reassured the governor he had pronounced the name of the truck, "Tyrano," correctly.
Mr. Schuermann himself became a household name, thanks to a 2013 episode of "Celebrity Wife Swap" in which his wife, former MTV VJ Downtown Julie Brown, swapped places with WNBA legend Lisa Leslie.
Despite the celebrity ties, Vision fell into trouble because it hasn't made any profits, despite doing some worthwhile things like trying to make greener tractor trailers and donating their new electric bikes to police for the Boston Marathon. The company also publicly retracted a statement that it may be profitable in 2014 after realizing it wasn't sure how to account for certain Federal grants.
The most immediate reason Vision gave for its Chapter 11 filing was an unwillingness by shareholders to go along with management's plan to increase the company's authorized share count to 10 billion from 500 million.
Despite having just $1.3 million in assets, $3.2 million in liabilities and very little in cash, Vision said it hopes to remain in business while it tries to reorganize in bankruptcy court.
Write to Joseph Checkler at joseph.checkler@wsj.com. Follow him on Twitter at @JoeCheckler.
