WHERE OH WHEREHOUSE

Wherehouse Music isn’t quite out of the woods yet, but the outlook is still upbeat.

The retailer had what insiders are calling a "mild surprise" earlier this week, as the court did not grant, as expected, their petition for DIP (debtor in possession) financing.

WM and Congress Financial were sent back to the drawing board due to objections raised by their unsecured investors. Basically, three of the four factions approved of the bid to create a $45 million credit line for WM to use during the bankruptcy process. The secured investors (being the major suppliers), Congress Financial and Wherehouse Music itself were all in favor of the plan. But the unsecured investors objected to certain provisions and, as a result, a revised motion will be heard on April 18.

Inside sources still insist that WM has more than enough cash collateral to make it successfully through the process—with or without DIP financing, but it sure would be a lot easier with it.