The extra outline is really killing the legibility on this. I don't see its usefulness, either, so you'd be better off getting rid of it. As a logotype it's difficult to read, but I think that removing the extra outline would help this fact while still keeping the desired style.
Also, I have to ask what the client is. What makes this logo right for them? You mentioned nothing of what the client does or what they were looking for, which makes it difficult to form an opinion about the effectiveness of your logo work. Please inform.
It's difficult to read, yes, but I don't think he's here to show its usefulness, or to give information about his client that I don't think people wanna know, unless it's for a special cause. Anyway I really like the logo, I don't see nothing wrong with the outline. It's kind of hard to read, yes, but I still like it; and on the other hand if you know the company's name (or whatever the logo's for) you can easily read it.
If a logo isn't meant to be legible then it's a failure of a logo. The whole point of a logo is clarity in messaging. Since this is a logotype, and I can't read it very easily, it's not working as well as it could.