It is a fact. The floating charge the Trustees have over the assets converts to a fixed charge in an administration event (as I guess it needs to be to calculate what they might be entitled to). From the bond prospectus:
A ‘fixed charge’ unlike a mortgage, does not transfer title, ownership or possession of the secured assets and/or interests to the Trustee (or to anyone else). Instead it allows the person giving the security to continue to own the secured assets and/or interests during the period in which the Bonds are outstanding. However, such usage is subject to certain conditions designed to maintain the value of the secured assets or interests and prevent the disposal of these assets or interests without the consent of the mortgagee (i.e. the Trustee acting on behalf of the Bondholders). On the occurrence of any enforcement event (for example, if the Issuer were to fail to make a payment of interest when due under the Bonds), the Trustee may (if directed to do so by Bondholders and subject to its being indemnified and/or secured and/or pre-funded to its satisfaction) either require the mortgagor company (i.e. the company granting the mortgage) to sell the secured assets or interests or it may take possession of the secured assets and either sell the assets or interest in it on its own or else appoint a receiver to sell the secured assets. Pursuant to the fixed charge, the Trustee, acting on behalf of the Bondholders, would have a claim over the proceeds of the sale of such secured assets in priority to any other creditors of the mortgagor company. The Trustee would, in such an event, hold all proceeds of the secured assets on trust for itself, the paying agents under the Bonds, the Account Bank and the Bondholders.
A receiver is selling the secured assets.
