Replies to post #48351 on Medizone Intl. (fka MZEIQ)

[BenK]

Hi gofor, good to hear from you.

You ask what Marshall's intention was, and how did he possibly think that he would stabilize Medizone by forcing bankruptcy. I had the same question. I'll write what I gather he means, but I'm not necessarily agreeing to his thinking.

All I can figure out is that he was 100% convinced that the funding proposal that Dodd was committing to - the S-1 funding - could never have succeeded, and the end result would have been bankruptcy, and/or a takeover by those creditors, who would take the Company private. So all shareholders would lose anyway.

So Marshall tried - at least this is what he is claiming - to force a reorganization through Ch. 11. If management had agreed to work something out along those lines, which presumably was the content of the May 5 conversation that Marshall refers to, there would have been a common goal of reorganizing the public entity. Whatever funds Marshall has behind him, plus anything management could have produced, would be pooled into a reorganization attempt.

Once management opted for Ch. 7, that is not relevant. The Company filing shifts the focus into a Ch. 7 trusteeship, and the burden is now on any concerned parties to convince the trustee that there is a viable path of restructuring. If this happens, the Ch. 11 is given a chance.

I have heard that the trustee is open to this, but the chances become much better if there is more backing.

For example, if there is enough funding to see Medizone clear till after FDA approval - which seems to be targeted hopefully by the end of this calendar year - I can imagine that this would encourage a favorable ruling toward the Ch. 11 approach, and render the Ch. 7 moot for the time being.

This is my understanding.