pent, you wrote:
"When you read the quote that the forced BK was with the... "intention of trying to stabilize the company" know this.
A Chapter 7 liquidates assets to the highest bidder.
That's not stabilizing anything. I assume BenK knows that this is a Chapter 7, not a Chapter 11."
Let me say from the outset, that I am inclined to still think that Esposito and Dodd are experienced, successful, businessmen, and very possibly would have been able to turn Medizone around, even after the years of unfulfilled promise. I don't accept Marshall's version as far as that goes, and I have told him so.
Having said that, Marshall filed a Ch. 11, not a 7, expecting that management would be forced to go along with reorganization, under the Ch. 11 protocol.
When Dodd filed a Ch. 7, that squashed the hopes for reorganization and placed it in the control of the Ch. 7 trustee.
It was not Marshall, it was current (former, unfortunately) management that triggered the liquidation process.
I spoke today to a Board member, asking him if they are going to continue to fight Marshall's petition. He said no, the petition is valid, and contesting it would be very expensive, and they don't have the funds.
So those of you who are still entertaining visions of a grand confrontation between the Forces of Light and the Forces of Darkness, are in for a disappointment...
I have also heard from a very involved person who spoke to the trustee. The trustee confirmed that although he is officially part of the Ch. 7 process, he can issue a recommendation that the Ch. 7 be deferred in favor of the Ch. 11, if in his estimation there seems to be a reasonable path for the Company to stabilize, i.e. enough cash.
In my conversation with the (former) Board member, the best he could tell me was that when they liquidate based on the Ch. 7, maybe the trustee can make enough from the sale that there will sufficient funds, after paying off the creditors, to pay something to the shareholders...
My friends, don't hold your breath.
So IMO it comes down to a simple choice. We can sit back and watch as this unravels, and have the comfort of cursing the Marshalls for many years to come.
Or we can explore the possibility that somehow we can gather enough resources from the shareholder base to convince the trustee that there is a fighting chance through reorganization.
I know what my choice will be, even if I have to bite my tongue more than once to do so. I am not ready to give up without a fight.
