Stage Updates – 15 Assets

As part of our monthly portfolio updates, we are sharing the latest developments in legal proceedings across selected debts within the Indemo portfolio. This month’s update includes 16 total updates across 15 unique assets, counting 9 legal Flow stage movements plus 7 opportunities completing Debt Purchase Registration (Subrogation).

Please note that R246 appears in both categories, as it recorded a legal Flow stage change and also completed Debt Purchase Registration.

These updates highlight key procedural movement and reinforce our ongoing commitment to transparency throughout the entire recovery lifecycle.

Why Flow Stage Updates Matter for Dynamic Portfolio Revaluation

This is no longer just a standard Flow Stage update. Following the launch of dynamic portfolio revaluation, Flow stage movements now play an important role in the indicative revaluation of both individual assets and an investor’s portfolio as a whole.

A stage update is one of the factors considered in the revaluation model. When an asset progresses through the recovery process, its indicative value adjusts accordingly, and this influences the overall indicative value of your portfolio.

As a debt moves through the Recovery Flow and successfully passes some of the most lengthy and complex stages — such as subrogation, opposition, or appeal — the remaining path to one of the potential exit scenarios becomes shorter. This reduced remaining duration is an important value driver, as it may improve the expected timing of recovery and influence yield expectations.

Therefore, as a case advances through the Recovery Flow and the remaining expected time to exit decreases, this progress influences the indicative revaluation of the position

You can find the revaluation figures in your Portfolio section of the platform (currently, the desktop version only)

Please note that revaluation changes are reflected the day after the Flow stage update.

For example, if a Flow stage update takes place on July 14, the related revaluation figures will become visible on July 15.

Quick Overview - Flow 2.0 Legal Process Matrix

The Updates

We are pleased to share this month’s legal stage updates, highlighting the continued progress across our portfolio. Below is a detailed summary of each asset that recorded a change in stage, including both the previous and current status, along with the official description of what each transition means.

🏢 J066 - Apartment in Parla

Previous Status: Claim Filing (Step 2)
Current Status: DEBTOR PAYMENT NOTIFICATION (Step 5)
What this means: The debtor has been notified by the Court and has been requested to pay or file an opposition to the claim.

🏡 R246 - House in Barcelona

Previous Status: Claim Filing (Step 2)
Current Status: CARGO CERTIFICATE COLLECTION (Step 4)
What this means: The Court requests from the Property Registry a certificate that includes every lien on the property to make sure the mortgage exists and the amount that it covers.

🏢 R171 - Detached Apartment in Barcelona

Previous Status: Claiming the Auction (Step 13)
Current Status: CLOSING THE AUCTION (Step 15)
What this means: The Court issues a certification stating the results of the auction.

🏠 A78 - Townhouse at Calle de Crono

Previous Status: Opening the Auction (Step 14)
Current Status: CLOSING THE AUCTION (Step 15)
What this means: The Court issues a certification stating the results of the auction.

🏡 J065 - House in Camas

Previous Status: Opposition Filing (Step 6)
Current Status: OPPOSITION HEARING (Step 7)
What this means: The Court holds a hearing where the parties can provide evidence and defend their position.

🏡 R030 - House at Carrer de la Roca

Previous Status: Claim Acceptance (Step 3)
Current Status: CARGO CERTIFICATE COLLECTION (Step 4)
What this means: The Court requests from the Property Registry a certificate that includes every lien on the property to make sure the mortgage exists and the amount that it covers.

🏢 R080 - Apartament in St. Cugat Valles

Previous Status: Claim Filing (Step 2)
Current Status: CLAIM ACCEPTANCE (Step 3)
What this means: The court initiates the claim and begins its attempts to notify the debtor.

🏡 R192 - Detached House in Barcelona

Previous Status: Award Decree (Step 18)
Current Status: AWARD DECREE REGISTRATION (Step 19)
What this means: The creditor is registered as the new owner of the property in the Property Registry.

🏡 R254 - House in Barcelona

Previous Status: Auction Preparation (Step 10)
Current Status: AUCTION EDICT (Step 11)
What this means: The Court notifies the auction edict with all the necessary details that need to be known by the possible bidders.

Important Note on the Flow Stages

It is important to note that these Flow Updates reflect legal stage changes only, which represent just one of three potential exit scenarios available to our partners. While court-driven recoveries are a visible and structured pathway, many successful outcomes occur outside of formal legal progression, including out-of-court settlements or sale on the debt secondary market.

As such, an absence of visible legal movement should not be interpreted as inactivity. Discounted, mortgage-backed debts are a long-duration asset class, and significant value creation often happens behind the scenes through legal, servicing, and negotiation work that is not immediately reflected in stage changes.

Moreover, time frequently works in the creditor’s favor. As claims accrue default interest and recoverable costs, the creditor’s position typically strengthens, improving leverage in negotiations and supporting stronger outcomes at auction or through alternative exits.

Success in discounted debt investing is not measured by how frequently legal stages change, but by achieving a profitable and well-structured resolution. Strong outcomes are often driven by disciplined acquisition at the right discount and risk profile, and may result from alternative exit routes such as out-of-court settlements, secondary market transactions, or direct property sales rather than a linear court process.

Special Notice - Debt Purchase Registration Completed

Seven opportunities have successfully cleared the Debt Purchase Registration interim step, an important procedural milestone for recently listed debts. This step often caused cases to appear stagnant, but now investors can see this interim stage in their Flow. Once cleared by the servicing company, the icon is removed, and the debt resumes its standard progression along the Flow, confirming that these positions are officially on the full recovery track.

🏡 R163 - Detached House in Alicante