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                                                                   EXHIBIT 10.52

NationsBank, N.A.
Charlotte, NC 28255
Tel 704 386-5000


                                August 27, 1997


ALAMAC KNIT FABRICS, INC.
507 West Tenth Street
West Point, Georgia 31833


     Termination of Commitments and Release of Liens

Gentlemen:

Reference is made to (i) that certain Credit Agreement, dated as of December 4,
1995, by and among Alamac Knit Fabrics, Inc. (the "Borrower"), AIH Inc. and
Alamac Enterprises, Inc. as guarantors (the "Guarantors"), NationsBank, N.A. as
agent (the "Agent"), and the various financial institutions parties thereto
from time to time, as amended from time to time (the "Alamac Credit
Agreement"), and (ii) that certain Amended and Restated Credit Agreement among
WestPoint Stevens Inc. (the "Borrower"), NationsBank of North Carolina, N.A.
(now known as NationsBank, N.A.) as administrative agent (the "Administrative
Agent"), and the various financial institutions parties thereto from time to
time (the "Lenders"), as amended from time to time (the "WestPoint Credit
Agreement"). The Alamac Credit Agreement and the WestPoint Credit Agreement
shall be referred to together as the "Loan Agreements".

The Agent and the Lenders understand that the Borrower desires to terminate,
and hereby terminates, all Commitments under the Alamac Credit Agreement, that
the Borrower requests that all liens and other encumbrances upon the property
of the Borrower and the Guarantors be released, and that the Borrower and the
Guarantors be released from their respective guaranties of payment with respect
to the WestPoint Credit Agreement. In connection therewith:

     1. The Agent, on behalf of itself and the Banks, and the Borrower hereby
acknowledge and agree as follows:

     A. Upon the Agent's receipt of this letter duly executed by the Borrower
and the Guarantors (the time and date at which the Agent has received such
executed counterpart being referred to as the "Effective Time"):

          (i) any and all liens and security interests in favor of the Agent,
     the Administrative Agent, or any Lender created under or in connection with
     the Loan Agreements or any other credit document in any of the assets of
     any of the Borrower or the Guarantor shall automatically be released and
     terminated without any further action on the part of the Agent, the
     Administrative Agent, or any Lender;


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          (ii) the Agent and the Administrative Agent shall, at the cost of the
     Borrower, promptly execute and deliver to the Borrower any and all
     necessary release documents (including, without limitation, UCC-3 financing
     statements in connection with the UCC-1 financing statements), each in form
     and substance reasonably satisfactory to the Borrower, to evidence the
     release and termination of the liens and security interests in favor of the
     Agent, the Administrative Agent and the Lenders created under or in
     connection with the Loan Agreements in any and all assets of the Borrower
     or the Guarantors and to effect such release of record;

          (iii) the Borrower and the Guarantors are released and discharged of
     any and all claims, demands, obligations, liabilities, costs and expenses,
     now existing or hereafter arising, under or in respect of the Loan
     Agreements, except for: (a) indemnification obligations owing to the Agent,
     the Administrative Agent, or any of the Lenders which pursuant to the Loan
     Agreements survive repayment of the loans or the termination of
     commitments, (b) claims against the Borrower or the Guarantors in
     connection with any bankruptcy or insolvency proceeding of the Borrower or
     the Guarantors, if and to the extent any payment or other transfer made by
     the Borrower or the Guarantors to the Lenders, the Administrative Agent, or
     the Agent on or prior to the Effective Time is avoided or otherwise
     rescinded, so that such Lender(s), the Administrative Agent, or the Agent
     is required pursuant to any final order of a court of competent
     jurisdiction to repay such payment or transfer, and (c) any costs,
     expenses, claims or liabilities arising hereunder or in connection
     herewith, including without limitation the reasonable attorneys' fees and
     expenses of the Agent, the Administrative Agent and the Lenders; and

          (iv) the Agent and the Administrative Agent shall, at the cost of the
     borrower, promptly execute and deliver or cause to be executed and
     delivered such documents and agreements and take or cause to be taken such
     action, in each instance, as the Borrower shall reasonably request to
     effectuate the agreements and purposes of this letter agreement.

     5. By their signatures below, the Borrower and the Guarantors hereby agree
that upon the Effective Time, each of the Lenders, the Agent, and the
Administrative Agent is irrevocably and unconditionally released and discharged
of any and all claims, demands, obligations, liabilities, costs and expenses,
now existing or hereafter arising, under or in connection with the Loan
Agreements or any other documents related thereto (including, without
limitation, any obligation or Commitment of any Lender to provide any financial
accommodations to the Borrower or the Guarantors under the Alamac Credit
Agreements).

     6. The release herein is being made without any representation or warranty
of any kind, express or implied, to the Borrower, the Guarantors, or any other
person and is without recourse to the Agent, the Administrative Agent, or any
of the Lenders.


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     7. This letter agreement:

          (i) shall be governed by and construed and enforced in accordance
with the laws of the State of New York applicable to contracts made and to be
performed entirely within such State, without reference to principles of
conflicts of laws;

          (ii) sets forth the entire agreement between the parties hereto
relating to the subject matter hereof, and no term or provision of this letter
agreement may be amended, changed, waived, discharged or terminated orally or
otherwise, except in a writing signed by each such party;

          (iii) may be executed in one or more counterparts, each of which
shall be an original and all of which, taken together, shall constitute one and
the same instrument; and

          (iv) shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

                                      Very truly yours,

                                      NATIONSBANK, N.A., as Agent and
                                           Administrative Agent


                                      By:      /s/ J. Timothy Martin
                                            ----------------------------

                                      Name:    J. TIMOTHY MARTIN
                                            ----------------------------
                                                                             
                                      Title:   Senior Vice-President
                                             ---------------------------


ACKNOWLEDGED AND AGREED on
this ____ day of August, 1997:

ALAMAC KNIT FABRICS, INC.


By:      /s/ M. Clayton Humphrey Jr.
       ----------------------------

Title:   V.P.
       ----------------------------


AIH, INC.

By:      /s/
       ----------------------------

Title:   Treasurer
       ----------------------------


ALAMAC ENTERPRISES INC.

By:      /s/
       ----------------------------

Title:   Treasurer
       ----------------------------


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