China’s E-House Chapter 15 recognition hearing slated for Nov. 14

By Sarah Lizee

Olympia, Wash., Oct. 11 – E-House (China) Enterprise Holdings Ltd. had the hearing on U.S. recognition of its scheme of arrangement proceedings in the Grand Court of the Cayman Islands scheduled for Nov. 14, according to an order filed Tuesday.

Under the scheme, the debtor seeks to restructure its $300 million 7 5/8% notes due April 18, 2022 and $300 million 7.6% notes due June 10, 2023, as previously reported.

The company was unable to pay the 2022 notes at maturity in April, which triggered a cross default on the 2023 notes. The company had launched an exchange offer for both series in April but failed to receive enough noteholder support to complete the exchange.

E-House moved forward with a restructuring support agreement under the Cayman scheme in order to avoid potentially entering into a liquidation or other insolvency proceedings.

The scheme consideration comprises:

• A cash payment of $60 per $1,000 in outstanding principal amount of the old notes held by each scheme creditor at the record date;

• New 8% notes due 2025 in a total principal amount of $940 per $1,000 in principal amount of the old notes held by each scheme creditor at the record date;

• Accrued interest up to but not including April 18, 2022 on any old notes held by each scheme creditor at the record date, which will be paid in cash; and

• Accrued interest from and including April 18, 2022, up to but not including the restructuring effective date on any old notes held by each scheme creditor at the record date, which will be paid in kind in the form of new notes.

Shanghai-based E-House mainly offers real estate agency services in the primary market, real estate data and consulting services and real estate brokerage network services. The company filed bankruptcy on Oct. 3 under Chapter 15 case number 22-11326.

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