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OMB APPROVAL
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OMB Number 3235-0287
Expires: September 30, 1998
Estimated average burden
hours per response ....... 0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject of Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person
Feinberg Stephen
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(Last) (First) (Middle)
450 Park Avenue, 28th Floor
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(Street)
New York NY 10022
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Wherehouse Entertainment, Inc.
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
August/1998
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [ X*] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing (Check Applicable Line)
[X*] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Persion
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TRANSACTIONS BY CERBERUS PARTNERS, L.P.*
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Common Stock 8/13/98 J** 13,112 A ** I* *
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Common Stock 8/26/98 J** 189 A ** 1,640,750* I* *
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TRANSACTIONS BY CERBERUS INTERNATIONAL, LTD.*
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Common Stock 8/13/98 J** 12,233 A ** I* *
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Common Stock 8/26/98 J** 177 A ** 1,947,462* I* *
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TRANSACTIONS BY ULTRA CERBERUS FUND, LTD*
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Common Stock 8/13/98 J** 1,030 A ** I* *
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Common Stock 8/26/98 J** 15 A ** 158,584* I* *
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TRANSACTIONS BY THE FUNDS*
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Common Stock 8/13/98 J** 27,649 A ** I* *
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Common Stock 8/26/98 J** 399 A ** 3,196,765* I* *
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly
<PAGE>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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</TABLE>
Explanation of Responses:
* The reporting person possesses voting and investment control over all
securities of Wherehouse Entertainment, Inc. (the "Company") owned by Cerberus,
International, Ultra and The Funds. The reporting person's interest is limited
to the extent of his pecuniary interest, if any, in Cerberus, International,
Ultra and The Funds. The amount of securities beneficially owned at the end of
the month reported in Column 5 of Table I includes the shares of common stock
underlying the unexercised warrants held by Cerberus, International, Ultra and
The Funds.
** The acquisitions of securities in the transactions described herein arise
from a distribution by the Company pursuant to the Company's Plan of
Reorganization ("Plan"), confirmed by an order of the United States Bankruptcy
Court for the District of Delaware, entered on January 7, 1997. The effective
date of the Plan occurred on January 31, 1997. For a summary of the Plan,
reference is made to the Company's Annual Report on Form 10-K for the fiscal
year ended January 31, 1998, and the description of the acquisitions contained
herein is qualified in its entirety by this reference to such summary of the
Plan. Cerberus, International, Ultra and The Funds are Senior Lenders (as that
term is defined in the Plan) for Plan administration purposes. Under the Plan,
Senior Lenders are entitled to receive a distribution of cash and the Company's
common stock (the "Initial Distributions") on account of their claims in the
subject bankruptcy proceeding, which claims principally arose from debt (the
"Debt") incurred by the Company in 1992 pursuant to the Pre-Petition Credit
Agreement (as that term is defined in the Plan). The Senior Lenders also are
entitled to receive additional distributions under the Plan (the "Additional
Distributions") as the claims of unsecured creditors are resolved during the
administration of the Plan. The aggregate value of the Initial Distributions and
the Additional Distributions will not exceed the principal amount of the Debt.
The acquisitions described above constitute Additional Distributions.
/s/ Stephen Feinberg September 4, 1998
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedures.
Potential persons who are to respond to the collection of information
contained in this form are not required unless the form displays a
currently valid OMB Number
