We wrote about our provider Milango and the issues that were affecting their performance on the MYC4 platform here . This post seeks to update our investors on the positive development that has come about in the form of a start in recoveries from Milango.
Our previous interactions with the Provider had revealed that Milango was restructuring in order to build an efficient business. We were informed that they were reconciling shareholders to hasten the process of normalizing operations. They were also incorporating other shareholder functions into the board governance structure. To tie all these down, an Annual General Meeting (AGM) was scheduled for the last quarter of 2014 and a decision on a way forward was expected.
Furthermore, in their quest to normalize operations, shareholders had injected new capital into the business to ensure the survival and growth of the business in the future. These funds were to be directed towards disbursements. Since disbursement of loans bring about repayments, the provider appreciated that the sooner they resumed normal business operations, the faster the repayments would begin to trickle in.
Milango promised to endeavor to normalize operations on their end, repay MYC4 loans and continue with our partnership. The restructuring of shareholder functions, the AGM for decision-making on the best way forward and injection of capital into the company by shareholders for normal business operations were key interventions to count on.
We are pleased to inform our investors that we recently received repayments from Milango amounting to Ksh 3 million/28,735 Euros. This is a great start and we expect more repayments to come streaming in. We shall keep you posted with more updates and more information.