The Issuer used the proceeds from the Series 2018-F1 Notes to grant a secured loan facility to Apex Aero Limited (the "Borrower") pursuant to a facility agreement dated 9 July 2018 (the "Facility Agreement"). On 9 July 2019, the Borrower granted to the Issuer certain mortgages and charges over its business and assets (the "Debenture").

The Borrower was placed into Administration on 12 September 2023 pursuant to paragraph 22 of Schedule B1 to the Insolvency Act 1986 and Peter Hart and Stephen Goderski of PKF Geoffrey Martin &Co Limited were appointed as joint administrators on the same date (the "Joint Administrators"). The appointment of the Joint of Administrators constituted an Event of Default under the Facility Agreement and the Debenture.

On 19 September 2023 the Trustee gave notice to the Issuer declaring that an Event of Default of the Series 2018-F1 Notes had occurred and that the Series 2018-F1 Notes were immediately due and payable. On 19 September 2023 the Trustee gave notice to the Issuer and Borrower that due to the Event of Default the Security is enforceable pursuant to the Deed of Charge and the Debenture and directing the Borrower (in administration) that it may only act pursuant to the instructions of the Trustee in respect of the Facility Agreement.

The Issuer under clause 16.1 (Power of Attorney) of the Trust Deed, by way of security, irrevocably and severally appointed the Trustee, to be its attorney acting severally, and on its behalf and in its name or otherwise to execute and do all such assurances, acts and things which the Issuer ought to do under the covenants and provisions contained in the Trust Deed.

The Issuer, under clause 14.1 (Power of Attorney) of the Deed of Charge, by way of security, irrevocably and severally appointed the Trustee to be its attorney acting severally, and on its behalf and in its name or otherwise to execute and do all such assurances, acts and things which the Issuer ought to do under the covenants and provisions contained in the Deed of Charge.

Following the enforcement notice dated 19 September 2023 and pursuant to the power of attorney contained in clause 16.1 (Power of Attorney) of the Trust Deed and clause 14.1 (Power of Attorney) of the Deed of Charge, the Trustee as attorney for the Issuer can approve, consent and enter into agreements to endeavour to collect from the Borrower an amount equal to the payments due under the Facility Agreement plus accrued interest.

On 23 October 2023, the Joint Administrators informed the Trustee that the Joint Administrators and Aeras Aviation LTD had entered into a sale and purchase agreement (the "SPA"). The Joint Administrators, as officers of the Court, asked the Trustee execute a deed of release (the "Deed of Release") to release certain assets from the security in order to facilitate the sale of Borrower's assets, acting by its Joint Administrators. The Trustee took legal advice as to whether to concur with the Joint Administrators to executing the Deed of Release. The Trustee signed the Deed of Release on 23 October 2023.

On 8 December 2023, the Issuer, as the secured creditor of the Borrower submitted a proof of debt to the Joint Administrators setting out the total outstanding amount in respect of the Facility Agreement.

In accordance with the order of application set out in Condition 4 (Status and Application of Moneys) of the Conditions and clause 6.1 (Priority of Payments) of the Deed of Charge, all moneys received by the Trustee shall be held on trust and applied in accordance with the priority of payments as set out in Condition 4 (Status and Application of Moneys) of the Conditions as follows:

first, in or towards satisfaction of (x) the costs, expenses, fees or other remuneration and indemnity payments (if any) and any other amounts incurred by the Trustee in preparing and executing the trusts and performing any obligations under the Transaction Documents; (y) the costs, expenses, fees or other remuneration and indemnity payments (if any) and any other amounts payable to any Receiver, including in the case of either the Trustee or a Receiver the costs of enforcing and/or realising any Security;

second, in or towards satisfaction of the costs, expenses, fees or other remuneration and indemnity payments (if any) and any other amounts payable to the Agents under the Transaction Documents;

third, in or towards payment of all arrears of interest remaining unpaid in respect of the Notes or Coupons and all principal monies due on or in respect of the Notes; and

fourth, the balance (if any) in payment to the Issuer.