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<SEC-DOCUMENT>0000902664-04-001491.txt : 20041015
<SEC-HEADER>0000902664-04-001491.hdr.sgml : 20041015
<ACCEPTANCE-DATETIME>20041015172743
ACCESSION NUMBER:		0000902664-04-001491
CONFORMED SUBMISSION TYPE:	SC 13G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20041015
DATE AS OF CHANGE:		20041015

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GENDELL JEFFREY L ET AL
		CENTRAL INDEX KEY:			0000948904

	FILING VALUES:
		FORM TYPE:		SC 13G

	BUSINESS ADDRESS:	
		STREET 1:		31 WEST 52ND ST
		STREET 2:		17TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	MAIL ADDRESS:	
		STREET 2:		200 PARK AVENUE SUITE 3900
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10166

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MFRI INC
		CENTRAL INDEX KEY:			0000914122
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL & COMMERCIAL FANS & BLOWERS & AIR PURIFYING EQUIP [3564]
		IRS NUMBER:				363922969
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		SC 13G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-43197
		FILM NUMBER:		041081817

	BUSINESS ADDRESS:	
		STREET 1:		7720 LEHIGH AVE
		CITY:			NILES
		STATE:			IL
		ZIP:			60714
		BUSINESS PHONE:		8479661000

	MAIL ADDRESS:	
		STREET 1:		7720 LEHIGH AVE
		CITY:			NILES
		STATE:			IL
		ZIP:			60714

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MIDWESCO FILTER RESOURCES INC
		DATE OF NAME CHANGE:	19970402
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13G
<SEQUENCE>1
<FILENAME>srz9740758v2.txt
<DESCRIPTION>GENDELL/GENERAL - OCT. 5, 2004
<TEXT>
                        SECURITIES & EXCHANGE COMMISSION
                             Washington, D.C. 20549
                             ----------------------

                                  SCHEDULE 13G*
                                 (Rule 13d-102)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
           TO RULES 13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED
                              PURSUANT TO 13d-2(b)

                                   MFRI, Inc.
                                (Name of Issuer)

                                  Common Stock
                         (Title of Class of Securities)

                                    552721102
                                 (CUSIP Number)

                                 October 5, 2004
             (Date of event which requires filing of this statement)


     Check the appropriate box to designate the rule pursuant to which this
 Schedule 13G is filed:
     [ ]  Rule 13d-1(b)
     [X]  Rule 13d-1(c)
     [ ]  Rule 13d-1(d)





                           (Page 1 of 8 Pages)
- ----------------
     *The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.

     The information required in the remainder of this cover page shall not be
deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).

<PAGE>


CUSIP No. 552721102                 13G                    Page 2 of 8 Pages

- ----------------------------------------------------------------------------
     (1)    NAMES OF REPORTING PERSONS
            I.R.S. IDENTIFICATION NO.
            OF ABOVE PERSONS (ENTITIES ONLY)
                                           Tontine Capital Partners, L.P.
- -----------------------------------------------------------------------------
     (2)    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
                                                                  (a)  [X]
                                                                  (b)  [ ]
- -----------------------------------------------------------------------------
     (3)    SEC USE ONLY
- -----------------------------------------------------------------------------
     (4)    CITIZENSHIP OR PLACE OF ORGANIZATION
                             Delaware
- -----------------------------------------------------------------------------
NUMBER OF      (5)  SOLE VOTING POWER
                                                        -0-
SHARES         ______________________________________________________________

BENEFICIALLY   (6)  SHARED VOTING POWER
                                                   301,855
OWNED BY       ______________________________________________________________

EACH           (7)  SOLE DISPOSITIVE POWER
                                                        -0-
REPORTING      ______________________________________________________________

PERSON WITH    (8)  SHARED DISPOSITIVE POWER
                                                   301,855
- -----------------------------------------------------------------------------
     (9)    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                                                   301,855
- -----------------------------------------------------------------------------
     (10)   CHECK BOX IF THE AGGREGATE AMOUNT
            IN ROW (9) EXCLUDES CERTAIN SHARES **                       [ ]
- -----------------------------------------------------------------------------
     (11)   PERCENT OF CLASS REPRESENTED
            BY AMOUNT IN ROW (9)
                                                     6.1%
- -----------------------------------------------------------------------------
     (12)   TYPE OF REPORTING PERSON **
                                   PN
- -----------------------------------------------------------------------------
                    ** SEE INSTRUCTIONS BEFORE FILLING OUT!


<PAGE>


CUSIP No. 552721102                 13G                    Page 3 of 8 Pages

- ----------------------------------------------------------------------------
     (1)    NAMES OF REPORTING PERSONS
            I.R.S. IDENTIFICATION NO.
            OF ABOVE PERSONS (ENTITIES ONLY)
                                       Tontine Capital Management, L.L.C.
- -----------------------------------------------------------------------------
     (2)    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
                                                                  (a)  [X]
                                                                  (b)  [ ]
- -----------------------------------------------------------------------------
     (3)    SEC USE ONLY
- -----------------------------------------------------------------------------
     (4)    CITIZENSHIP OR PLACE OF ORGANIZATION
                             Delaware
- -----------------------------------------------------------------------------
NUMBER OF      (5)  SOLE VOTING POWER
                                                      -0-
SHARES         ______________________________________________________________

BENEFICIALLY   (6)  SHARED VOTING POWER
                                                 301,855
OWNED BY       ___________________________________________________________

EACH           (7)  SOLE DISPOSITIVE POWER
                                                      -0-
REPORTING      ______________________________________________________________

PERSON WITH    (8)  SHARED DISPOSITIVE POWER
                                                 301,855
- -----------------------------------------------------------------------------
     (9)    AGGREGATE AMOUNT BENEFICIALLY OWNED
            BY EACH REPORTING PERSON
                                                 301,855
- -----------------------------------------------------------------------------
     (10)   CHECK BOX IF THE AGGREGATE AMOUNT
            IN ROW (9) EXCLUDES CERTAIN SHARES **                       [ ]
- -----------------------------------------------------------------------------
     (11)   PERCENT OF CLASS REPRESENTED
            BY AMOUNT IN ROW (9)
                                                   6.1%
- -----------------------------------------------------------------------------
     (12)   TYPE OF REPORTING PERSON **
                                                    OO
- -----------------------------------------------------------------------------
                    ** SEE INSTRUCTIONS BEFORE FILLING OUT!


<PAGE>


CUSIP No. 552721102                 13G                    Page 4 of 8 Pages

- ----------------------------------------------------------------------------
     (1)    NAMES OF REPORTING PERSONS
            I.R.S. IDENTIFICATION NO. OF ABOVE
            PERSONS (ENTITIES ONLY)
                                                    Jeffrey L. Gendell
- -----------------------------------------------------------------------------
     (2)    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
                                                                  (a)  [X]
                                                                  (b)  [ ]
- -----------------------------------------------------------------------------
     (3)    SEC USE ONLY
- -----------------------------------------------------------------------------
     (4)    CITIZENSHIP OR PLACE OF ORGANIZATION
                           United States
- -----------------------------------------------------------------------------
NUMBER OF      (5)  SOLE VOTING POWER
                                                  -0-
SHARES         ______________________________________________________________

BENEFICIALLY   (6)  SHARED VOTING POWER
                                               301,855
OWNED BY       ___________________________________________________________

EACH           (7)  SOLE DISPOSITIVE POWER
                                                  -0-
REPORTING      ______________________________________________________________

PERSON WITH    (8)  SHARED DISPOSITIVE POWER
                                               301,855
- -----------------------------------------------------------------------------
     (9)    AGGREGATE AMOUNT BENEFICIALLY OWNED
            BY EACH REPORTING PERSON
                                               301,855
- -----------------------------------------------------------------------------
     (10)   CHECK BOX IF THE AGGREGATE AMOUNT
            IN ROW (9) EXCLUDES CERTAIN SHARES **                       [ ]
- -----------------------------------------------------------------------------
     (11)   PERCENT OF CLASS REPRESENTED
            BY AMOUNT IN ROW (9)
                                                 6.1%
- -----------------------------------------------------------------------------
     (12)   TYPE OF REPORTING PERSON **
                                                  IN
- -----------------------------------------------------------------------------
                    ** SEE INSTRUCTIONS BEFORE FILLING OUT!


<PAGE>



CUSIP No. 552721102                 13G                    Page 5 of 8 Pages

Item 1(a).     Name of Issuer:

     The name of the issuer is MFRI, Inc. (the "Company").

Item 1(b).     Address of Issuer's Principal Executive Offices:

     The Company's principal executive offices are located at 7720 Lehigh
Avenue, Niles, Illinois 60714.

Item 2(a).     Name of Person Filing:

     This statement is filed by:
       (i)   Tontine Capital Partners, L.P., a Delaware limited
             partnership ("TCP") with respect to the shares of Common
             Stock directly owned by it;
      (ii)   Tontine Capital Management, L.L.C., a limited liability
             company organized under the laws of the State of Delaware
             ("TCM"), with respect to the shares of Common Stock directly
             owned by TCP; and
      (iii)  Jeffrey L. Gendell ("Mr. Gendell"), with respect to the shares
             of Common Stock owned directly by TCP.

      The foregoing persons are hereinafter sometimes collectively
      referred to as the "Reporting Persons." Any disclosures herein with
      respect to persons other than the Reporting Persons are made on
      information and belief after making inquiry to the appropriate
      party.

Item 2(b).     Address of Principal Business Office or, if None, Residence:

     The address of the business office of each of the Reporting Persons is
55 Railroad Avenue, Third Floor, Greenwich, Connectict 06830.

Item 2(c).     Citizenship:

     TCP is a limited partnership organized under the laws of the State of
Delaware.  TCM is a limited liability company organized under the laws of the
State of Delaware.  Mr. Gendell is a United States citizen.

Item 2(d).     Title of Class of Securities:
     Common Stock, $0.01 par value (the "Common Stock")


<PAGE>



CUSIP No. 552721102                 13G                    Page 6 of 8 Pages

Item 2(e).  CUSIP Number:  552721102

Item 3. If this statement is filed pursuant to Rules 13d-1(b) or 13d-2(b) or
(c), check whether the person filing is a:

     (a) [ ]  Broker or dealer registered under Section 15 of the Act,

     (b) [ ]  Bank as defined in Section 3(a)(6) of the Act,

     (c) [ ]  Insurance Company as defined in Section 3(a)(19) of the
              Act,

     (d) [ ]  Investment Company registered under Section 8 of the
              Investment Company Act of 1940,

     (e) [ ]  Investment Adviser in accordance with Rule 13d-1
              (b)(1)(ii)(E),

     (f) [ ]  Employee Benefit Plan or Endowment Fund in accordance
              with Rule 13d-1 (b)(1)(ii)(F),

     (g) [ ]  Parent Holding Company or control person in accordance
              with Rule 13d-1 (b)(1)(ii)(G),

     (h) [ ]  Savings Association as defined in Section 3(b) of the
              Federal Deposit Insurance Act,

     (i) [ ]  Church Plan that is excluded from the definition of an
              investment company under Section 3(c)(14) of the Investment
              Company Act of 1940,

     (j) [ ]  Group, in accordance with Rule 13d-1(b)(1)(ii)(J).

    Not applicable.

Item 4.   Ownership.

      A.  Tontine Capital Partners, L.P.
          (a) Amount beneficially owned:  301,855
          (b) Percent of class: 6.1% The percentages used herein and in
the rest of Item 4 are calculated based upon the 4,922,364 shares of Common
Stock issued and outstanding as of September 13, 2004, as set forth in the
Company's Form 10-Q for the quarterly period ended July 31, 2004.
          (c)(i) Sole power to vote or direct the vote: -0-
            (ii) Shared power to vote or direct the vote: 301,855
           (iii) Sole power to dispose or direct the disposition: -0-


<PAGE>


CUSIP No. 552721102                 13G                   Page 7 of 8 Pages

            (iv) Shared power to dispose or direct the disposition: 301,855

         B.  Tontine Capital Management, L.L.C.
              (a) Amount beneficially owned:  301,855
              (b) Percent of class: 6.1%
              (c)(i) Sole power to vote or direct the vote: -0-
                (ii) Shared power to vote or direct the vote: 301,855
               (iii) Sole power to dispose or direct the disposition: -0-
                (iv) Shared power to dispose or direct the disposition: 301,855

         C. Jeffrey L. Gendell
              (a) Amount beneficially owned: 301,855
              (b) Percent of class: 6.1%
              (c)(i) Sole power to vote or direct the vote: -0-
                (ii) Shared power to vote or direct the vote: 301,855
               (iii) Sole power to dispose or direct the disposition: -0-
                (iv) Shared power to dispose or direct the disposition: 301,855

Item 5.     Ownership of Five Percent or Less of a Class.

     Not applicable.

Item 6.     Ownership of More than Five Percent on Behalf of Another Person.

     TCM, the general partner of TCP, has the power to direct the affairs of
TCP, including decisions respecting the disposition of the proceeds from the
sale of the shares. Mr. Gendell is the Managing Member of TCM and in that
capacity directs its operations.

Item 7.     Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company.

     Not applicable.

Item 8.  Identification and Classification of Members of the Group.

     Not applicable.

Item 9.  Notice of Dissolution of Group.

     Not applicable.

Item 10.  Certification.

     Each of the Reporting Persons hereby makes the following certification:

          By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect. CUSIP
No. 552721102 13G Page 8 of 8 Pages


<PAGE>

CUSIP No. 552721102                 13G                   Page 8 of 8 Pages


SIGNATURES

After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.


DATED:  October 15, 2004

                                    /s/ JEFFREY L. GENDELL
                                    Jeffrey L. Gendell, individually, and as
                                    managing member of
                                    Tontine Capital Management, L.L.C., and as
                                    general partner of
                                    Tontine Capital Partners, L.P.



</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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