E-House (China) Enterprise (HKG:2048) has entered into a restructuring support agreement (RSA) with initial consenting creditors representing about 36% of its offshore debt, according to a Monday Hong Kong bourse filing.

The agreement forms part of the company's proposed restructuring of its offshore debts, including its notes and convertible notes, which may be implemented through new schemes of arrangement in Hong Kong and the Cayman Islands.

Under the illustrative terms, scheme creditors will receive new shares representing about 216.7% of E-House's existing issued shares, which are expected to make up roughly 65% of its enlarged share capital upon completion.

An additional instruction fee, also payable in shares, will comprise about 5% of the enlarged capital, bringing the total illustrative issuance to around 233.3% of existing shares, or 70% of the expanded equity base.

E-House said it plans to invite remaining holders of the notes to participate in the RSA by submitting accession documents through its information agent by Dec. 5.

The company said the restructuring follows continued financial distress among its major real estate customers, which has affected its financial position and limited its ability to repay offshore creditors.