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 9 affected assets, counting 5 legal Flow stage movements plus 4 opportunities completing Debt Purchase Registration (Subrogation).
These updates highlight key procedural movement and reinforce our ongoing commitment to transparency throughout the entire recovery lifecycle.
It is also worth noting that August and the beginning of September are typically slower periods in Spain, including within the judicial system. Many court officers are on annual leave during this period, which can temporarily slow down case processing and limit visible legal movement.
This seasonal slowdown is reflected in this month’s update, with fewer cases moving forward compared to the pace usually seen during other parts of the year. The judicial system is now returning to its regular rhythm, and we expect case activity to continue normalizing in the weeks ahead.
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 > Assets section of the platform
Make sure to update your Indemo App to see the revaluation update on mobile.
Please note that revaluation changes are reflected the day after the Flow stage update.
For example, if a Flow stage update takes place on September 17, the related revaluation figures will become visible on September 18.
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.
🏢 R199 - Residential Apartment in Málaga
Previous Status: Appeal (Step 9)
Current Status: AUCTION PREPARATION (Step 10)
What this means: Creditor, debtor, or third party possessor ask the Court for the initiation of the auction.
🏡 R168 - House in Malaga
Previous Status: Award Decree Registration (Step 19)
Current Status: POSSESSION REQUEST (Step 20)
What this means: The creditor requests the physical possession of the property.
🏢 R267 - Apartment in Cadiz
Previous Status: Auction Edict (Step 11)
Current Status: AUCTION TAX (Step 12)
What this means: Tax to start the auction needs to be paid.
🏢 R265 - Apartment in Madrid
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.
🏡 R272 - House in Cadiz
Previous Status: Closing the Auction (Step 15)
Current Status: AWARD DECREE (Step 18)
What this means: The Court issues a decree awarding the property to the creditor when the price has been deposited.
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.
🏢 R190 - Apartment in Madrid
Status: Debt Purchase Registration Completed.
🏡 R209 - House with Terrace in Sevilla
Status: Debt Purchase Registration Completed.
🏡 R255 - House in Barcelona
Status: Debt Purchase Registration Completed.
🏡 R223 - House in Tarragona
Status: Debt Purchase Registration Completed.
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This content is a marketing communication. It shall not be treated as investment advice, independent research or offer, recommendation or invitation to invest in the investment opportunities referred to herein. The content is not aimed at promoting services or products to persons based in jurisdictions where the distribution of said information would be illegal.
Investing in financial instruments involves risk, and there’s no guarantee that investors will get back invested capital. Moreover, past performance does not guarantee future returns. Indemo SIA shall not be responsible for any direct or indirect loss from using the provided information.