Replies to post #48359 on Medizone Intl. (fka MZEIQ)

[Spumoni]

You can't make this stuff up! Ridiculous, with each passing day the already slim chance of success gets slimmer and slimmer. Pathetic

[jackcross18]

One would have thought Ed' s legal team would have explained to him the possible options the company could take, including Chapter 7.

Seems Ed was totally surprised that the company went this route. Once again Ed' s "dream team" of legal advisors seems to offered poor counsel.

The last time he filed lawsuits against the boys from Utah, I was told he filed them in the wrong jurisdiction and had to file them over again.

If anyone deserves to loose everything it's Ed.

Seems the only hope for shareholders is a punitive judgement against Ed for filing the Chapter 11. Maybe the judge will cancel the 1.5 million debt the company owes and give MZEI the keys to his Stinson Beach house. Then convert Chapter 7 to 11, and work our way out of this mess.

Well it's nice to dream....

[BenK]

What is there to say? I think we all feel the same way.

But the stark reality is that current management seems to have left us hanging high and dry. At least we can try to fight that the Ch. 11 be reconsidered.

There doesn't seem to be any other chance that our shares will ever be worth anything.

If there is a reorganization, IMO there still is some hope; maybe not the grandiose dreams of the past ("$4 by March"), but enough to save our investment and maybe eke out a little profit.

The potential of the technology is still intact. With a go-ahead from the FDA, things should look more positive.

[BenK]

"Wow---the gall of it all..."out of the blue"..."contacted the Board to help AFTER putting the co. into bankruptcy"..."

The Yiddish word for "gall" is "chutzpah". And there's a famous Yiddish saying... What's the definition of chutzpah? A guy who kills his parents, and then asks the judge for mercy because he's an orphan...

As you say, Marshall's behavior certainly seems to fit this definition perfectly.

The only other perspective on his behavior comes from Marshall himself. He sent me a copy of an email that he sent to a long-time shareholder who had posted here today, which contains the following explanation for his actions:

"Even though retired, I had always maintained positive relationships with all of the people and firms we had worked with over the years. When management fell behind on their financial obligations to Jill and me over the first 4 to 6 months, my initial response was to simply allow them more time to figure things out.

As time went on I became more concerned and started "calling around." What I found was appalling. The financial situation, certainly to my judgment, showed an imminent collapse on the horizon. Without paying the auditors from the 10K report, I did not see how they could even make the first quarter's 10Q filing. Medizone's patent attorneys had frozen them out of further work due to unpaid invoices. One of the engineers had not been paid in a year. Legal teams working on FDA work had not been paid, it went on and on.

Looking at the financial situation Medizone management had gotten into, deep in debt and with only death spiral funding with L-2 Capital and SBI Investments available, a chapter 11 reorganization - in my judgment - was the only possible way out of collapse. A Ch. 11 freezes current debt, and, with significant investment, possibly can allow a re-stabilization of the company. A chapter 7, on the other hand, which the company had a legal right to do, and decided on that path, is normally the end of a company as it is known."

Is he right about the hopelessness of the pre-bankruptcy situation? We will probably never know.

The key words here are "in my judgment". Marshall acted on his information and his instincts, and we are forced to proceed from there, like it or not.