To all: I received this note from Ed Marshall. My only communication with him previously was to express my anger and resentment over the Ch. 11 filing, which at the time appeared to destroy the chances for success that, according to management, were coming closer.
That was a few weeks ago, right after the Ch. 11 petition.
Since then, the cycle of events that were triggered by the Ch. 11 has demonstrated that management has basically given up. They filed a Ch. 7, and show no signs of converting it to an 11.
This leaves the Involuntary petition for Ch. 11 as the only chance for preserving the public structure of Medizone. From what I've gathered, the Ch. 7 trustee has the option of deciding to give the Ch. 11 a chance. This means that if there is a reasonable path forward through reorganization, then the trustee, and the judge who has the final say, will give that a shot. This is a distinct possibility, since the bankruptcy process recognizes preserving the stake of shareholders as a preferred goal, when it is feasible.
It seems that Marshall has a certain amount of funding behind him. It may not be enough to convince the trustee that there are sufficient resources to keep the Company afloat.
The question of a GoFundMe campaign among us shareholders may become a factor at this point.
If there is a reorganization, the trustee will appoint a new slate of executives. Former officers are not eligible.
Here's Marshall's letter:
Ben-
You may share this with the shareholders should you choose to. Please appreciate I will have nothing further to comment until the next affirmative steps are taken by the chapter 7 trustee, if then.
To summarize, here is my experience of the situation:
Following a review of the deep financial trouble Medizone was in over the past 12 months, and how much in arrears they were with us and almost all vendors, we filed an involuntary chapter 11 bankruptcy, along with others, with the intention of trying to stabilize the company.
On May 4th, I had communicated to the Board our intention to try and help the company. An email chain between Mr. Esposito, Mr. Dodd, Mr. Dodd's attorney and our attorney for the chapter 11, was all part of the communication history.
Mr. Esposito called me on Saturday, May 5th and we discussed our intention. I was frank on how seriously I saw the financial problems, but also tried to be as positive as possible with the intention of bringing help to the company. After all, my sources had been funding the company for decades prior to the management change of March 1, 2017.
Three days later, out of the blue on May 8th, Medizone filed a chapter 7 bankruptcy proceeding without any further communication. This filing put a stop on our reorganization effort. A company does have a legal right to file a chapter 7, and that is exactly what transpired.
Many of us are very frustrated and are trying to see ways in which some good might come of this. Should a very significant level of funding be forthcoming, it is possible to turn the 7 into an 11 again.
Honestly, this would appear to be a long shot. Once in a 7 the normal course of events is to see assets liquidated and the shareholders lose everything.
There are thousands of losers in this, certainly counting me and my family. Once the company filed the 7, the former management team is no longer in charge. I am not in charge. The court-appointed trustee is in charge.
I never saw this coming in March of 2017, but here we are today. If anything positive can be salvaged via the trustee, I will be sure to let you know. For now, it is in the trustee's purview.
Ed
Edwin G. Marshall
Retired Board Chair & CEO
Medizone International, Inc.
