Yes, I noticed the text, don't worry
First thing to do is to PARSE with a length of the maximum record-length. You need that, because we're just about to destroy the data...
Then FINDREP to change C' ' (a space) to something else (your choice, except C'E').
Then OVERLAY to put a character at max-rec-length-plus-one. From that point all your records are fixed-length, space-padded and with no spaces in the data.
Then BUILD with JFY and SHIFT=RIGHT, which will jam all the data over to the right of the record. Your E/non-E is now in the position of the original maximum record-length.
Now BUILD with the PARSEd field from earlier, and the indicator.
OUTFIL first-file,INCLUDE= for the C'E', set the indicator to space, and use VLTRIM.
OUTFIL second-file,SAVE,set indicstor to space use VLTRIM.
Should get you close.