MDM Company logo

can this logo be saved?

I Currently work for a company that asked me to update their logo, number one reason for it that current logo is not very readable.

Since current logo been used for a few years now, I would like to preserve some of it's qualities such as overlapping letters and an "i" tittle at the end. Original logo is a heavily squished Arial.

I am having seconds thoughts regarding this direction, and considering designing a brand new logo. I understand that attached still need polishing, but would like to hear your thoughts.