E-House gives update on new schemes, restructuring support agreements

By Sarah Lizee

Olympia, Wash., April 2 – E-House (China) Enterprise Holdings Ltd. plans to propose new schemes to holders of its notes and convertibles in light of termination of the prior schemes, according to a notice filed with the Hong Kong Stock Exchange.

If each of the new schemes are sanctioned by the relevant court and become effective, on the restructuring effective date, the company will, among other things, pay a cash consideration to the participating scheme creditors consisting of $90 per $1,000 of the claim held by each scheme creditor at the record time.

In connection with the new schemes, the company expects to enter into restructuring support agreements in order to seek the support from holders of the old notes and noteholder Alibaba.com Hong Kong Ltd.

Under the relevant restructuring support agreements, the company intends to pay to holders of the old notes and Alibaba an instruction fee in a total amount equal to 0.5% of the aggregate principal amount of the old notes or the convertible notes, if the new restructuring is completed under a Cayman Scheme and a Hong Kong scheme.

E-House said has confirmed its in-principle support of the new restructuring.

As a reminder, the company said a hearing was held in a Cayman court on March 26 to update the court and give an indication of how the company intended to proceed in relation to the Cayman and Hong Kong schemes, as well as to give scheme creditors an opportunity to make representations to the court.

E-House said no scheme creditors were present.

The company said it hasn’t been able to close its previously proposed restructuring under the schemes and, as a result, the restructuring effective date will not occur by the March 31 longstop date.

E-House said both schemes would lapse and all compromises and arrangements provided by the schemes would cease to have any force or effect. All pre-scheme rights would revive and be enforceable from that time.

The company noted that it would be paying the fees of its advisers in relation to the schemes.

E-House said that by the end of April it planned to pursue a transparent dialogue with holders of its notes and convertibles, with a view to identifying and agreeing to a revised restructuring.

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’s Chapter 15 case number is 24-10234.

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