163

Exhibit 4.3(i)
                                     THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
                                              c/o Prudential Capital Group
                                              Two Ravinia Drive, Suite 1400
                                                  Atlanta, Georgia 30346
September 1, 1999

Cone Mills Corporation
3101 North Elm Street
Greensboro, North Carolina 27408

Attn:  Mr. David Bray, Treasurer

Ladies and Gentlemen:

     Reference is made to the Note  Agreement  dated as of August 13,  1992,  as
heretofore  amended (the "Note  Agreement")  between Cone Mills Corporation (the
"Company")  and The  Prudential  Insurance  Company of  America  ("Prudential").
Capitalized  terms used and not  otherwise  defined in this letter have the same
meanings  given those  terms in the Note  Agreement.  Pursuant to the  Company's
request, and subject to its written acceptance hereof,  Prudential hereby agrees
with the Company as follows:  1. The  definition of "Funded  Debt"  appearing in
paragraph 10B of the Note Agreement is hereby amended by  substituting  the term
"Capital  Investment"  for the  term  "Net  Investment."  2. The  definition  of
"Purchase  Agreement" appearing in paragraph 10B of the Note Agreement is hereby
amended to read in its entirety as follows: "Purchase Agreement" shall mean that
certain Receivables  Purchase and Servicing Agreement dated September 1, 1999 by
and among Cone Receivables II LLC, as Seller,  Redwood Receivables  Corporation,
as Purchaser, the Company, as Servicer and General Electric Capital Corporation,
as  Operating  Agent  and  Collateral  Agent,  as it may be  amended,  modified,
restated  or  supplemented  from time to time in  accordance  with its terms and
herewith.  3. Clause (iv) of  paragraph  6C(2) of the Note  Agreement  is hereby
amended to read in its  entirety as follows:  "(iv) other Funded Debt of (1) any
Subsidiary pursuant to the Purchase Agreement, (2) the Company or (3) Cornwallis
(in each case whether Secured or Unsecured) other than Current Debt owing by the
Company to any  Subsidiary;  and" 4.  Paragraph  6C(4) of the Note  Agreement is
hereby amended by adding a new clause (iv),  immediately  following clause (iii)
thereof, to read as follows:  "(iv) sales of accounts receivable pursuant to the
Purchase  Agreement." 5. The definition of "Receivables  Financing" appearing in
paragraph 10B of the Note Agreement is hereby amended to read in its entirety as
follows: "Receivables Financing" shall mean the transactions contemplated by the
Purchase  Agreement  and the  Transfer  Agreement  (as  defined in the  Purchase
Agreement) pursuant to such Agreements. 6. Paragraph 6H of the Note Agreement is
hereby amended to read in its entirety as follows:  6H. Purchase Agreement.  The
Company  convenants that it will not (i) amend, waive or modify Article I, Annex
X, or Sections 6.03, 6.04 or 6.05 of the Purchase  Agreement without the consent
of the Required Holder(s);  (ii) allow the Capital Investment (as defined in the
Purchase Agreement) to exceed  $75,000,000;  or (iii) allow the Maximum Purchase
Limit  (as  defined  in  the  Purchase  Agreement)  to  exceed  $75,000,000.  7.
Prudential  hereby waives the Company's and its  Subsidiaries'  compliance  with
paragraph 5E and paragraph  6C(3) of the Note  Agreement with respect to (i) the
Lien  granted  to  Redwood  Receivables  Corporation  pursuant  to the  Purchase
Agreement and (ii) the Company's  guarantee of the  obligations  of each Selling
Subsidiary (as defined in the Transfer  Agreement) under the Transfer  Agreement
or any other  documents  delivered in  connection  therewith.  Except as amended
herein, all of the terms, conditions and obligations of the Note Agreement shall
remain in full force and effect.  If you are in  agreement  with the  foregoing,
please sign in the space  provided  below and this letter shall become a binding
agreement between the Company and Prudential.
Very truly yours,

THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA

By:/s/ Robert R. Derrick
   Vice President

Agreed and accepted as of
the date first above written:
CONE MILLS CORPORATION

By:/s/ David E. Bray
Title:  Treasurer