Exhibit 4(d)(17)

[BankBoston's Letterhead appears here]




                                 August 21, 1998

Texfi Industries, Inc.                          [BankBoston's Logo appears here]
5400 Glenwood Avenue, Suite 215
Raleigh, North Carolina  27612

      Attention:  Robert Ambrosini

                         Forbearance Agreement Extension

Ladies and Gentlemen:

     We refer to the Forbearance Agreement dated as of June 5, 1998 (as amended
by that certain letter agreement dated as of July 21, 1998, the "Forbearance
Agreement") to which you and we are parties. Terms defined in the Forbearance
Agreement are used herein as therein defined.

     You have requested an extension of the Forbearance Period from August 24,
1998 to August 31, 1998, to permit additional time to negotiate a refinancing or
restructuring of the Borrower's outstanding Debt. The Agent and the Lenders
agree so to extend the Forbearance Period, provided that from and after the
earlier of the date of this letter and August 24, 1998 and continuing through
August 31, 1998,

     (a) the definition "Forbearance Period" is amended in its entirety to read
as follows:

            "Forbearance Period" means the period beginning on the date hereof
      and ending on the earlier of August 31, 1998 and the date on which the
      Agent notifies the Borrower any Forbearance Condition (as hereinafter
      defined) fails or ceases to be satisfied.

      (b) no repayments of principal of the Term Loan shall be required to be
made prior to August 31, 1998; and

      (c) subsection (f) or Section 3, "Forbearance Conditions" is hereby
amended in its entirety to read as follows:

            (f) A comparison of the Borrower's results of operations and
      financial condition during the period from May 15, 1998 through any
      comparison date on or prior to August 31, 1998 to the business plan dated
      May 15, 1998 (adjusted for the increase in the interest rate applicable to
      the Loans as provided in Section 2(c)) submitted by the Borrower to the
      Agent and the Lenders (the "Business Plan") for the same period, shall not
      result in any material adverse variance;
<PAGE>

Mr. Robert Ambrosini
Texfi Industries,Inc.
August 21, 1998
Page 2

      Please indicate your acceptance of the foregoing, your representation that
as of the date hereof there are no Defaults or Events of Default existing under
the Loan Agreement, other than the Forbearance Defaults, and your ratification
of the Forbearance Agreement, the Loan Agreement and the other Loan Documents,
except as modified hereby, by signing the enclosed duplicate of this letter in
the space indicated and returning it to the undersigned.

                                Very truly yours,



                                      BANKBOSTON,  N.A., as the Agent and
                                   as a Lender


                                      By:/s/ Christian B. Colson
                                         --------------------------------
                                         Christian B. Colson
                                         Managing Director

                                     THE CIT GROUP/COMMERCIAL
                                 SERVICES, INC.:


                                     By: /s/ Gordon Jones
                                        ---------------------------------
                                        Name: Gordon Jones
                                             ----------------------------
                                        Title: Vice President
                                              ---------------------------

                             NATIONAL BANK OF CANADA


                                     By:    /s/ Charles Collie
                                        ---------------------------------
                                        Name:  Charles Collie
                                              ---------------------------
                                        Title: VP & Mgr.
                                              ---------------------------


                                     By: /s/ Alex M. Council IV
                                        ---------------------------------
                                        Name:  Alex M. Council IV
                                              ---------------------------
                                        Title: Vice President
                                              ---------------------------
                                       2
<PAGE>
Mr. Robert Ambrosini
Texfi Industries,Inc.
August 21, 1998
Page 3

Accepted and agreed this 
25th day of August, 1998.
----
  TEXFI INDUSTRIES, INC.


  By: /s/ Robert P. Ambrosini
     ---------------------------
     Name: Robert P. Ambrosini
           ---------------------
     Title: EVP & CFO
           ---------------------