A customer subscription expired and in accordance with assigned Service Terms should be destroyed automatically after Hold Period since the parameter 'Destroy Service after Hold Period' is set to 'Yes' in Service Terms.
Despite of the Service Terms configuration provided above BA did not destroy the expired subscription after Hold Period passed.
The subscription is in one of the statuses -
Credit Hold or
Administrative Hold, BA ignores subscriptions in these statuses when checking the list of subscriptions to be marked for expiration/destroying. The issue is considered to be a bug with id #PBA-32307 ("Service terms do not get applied to subscriptions put on credit hold while documentation states opposite").
As soon as the subscription is released from Credit Hold or Administartive Hold, its status will be changed according to the service terms (that will happen with the next daily billing process).