FORM 10-Q

Exhibit 2.1(e)


         AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT



    AMENDMENT dated as of June 28, 1995 (this "Amendment") of
a Receivables Purchase Agreement dated as of August 11, 1992,
as amended (as amended, the "Receivables Purchase Agreement"),
between CONE MILLS CORPORATION (the "Seller") and DELAWARE
FUNDING CORPORATION (the "Buyer").  Terms defined in the
Receivables Purchase Agreement and not otherwise defined
herein have the same meaning when used herein.

                         WITNESSETH:

    WHEREAS, the Seller and the Buyer are parties to the
Receivables Purchase Agreement; and

    WHEREAS, the Seller and the Buyer desire to amend the
Receivables Purchase Agreement (i) to extend the Expiration
Date, (ii) to amend the definition of Letter Agreement, (iii)
to amend the definition of Purchase Availability Fee and (iv)
to amend certain covenants of the Seller.

    NOW, THEREFORE, the parties hereto, in consideration of
their mutual covenants hereinafter set forth and intending to
be legally bound hereby, agree as follows:

ARTICLE I. Amendment to the Receivables Purchase Agreement.

    Subject to the satisfaction of the conditions precedent
specified in Article IV hereof, the Receivables Purchase
Agreement and the exhibits thereto shall be amended as
follows:

(a)     The definition "Expiration Date" in Section
        1.01 of the Receivables Purchase Agreement is
        amended by replacing clause (i) of the
        definition with "(i) June 24, 1996,".

(b)     The definition "Letter Agreement" in Section
        1.01 of the Receivables Purchase Agreement is
        amended by inserting ", as further amended by
        the letter dated June 28, 1995,"after "June 7,
        1994" in such definition.


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FORM 10-Q

Exhibit 2.1(e)   (continued)



(c)     The definition of "Purchase Availability Fee"
        in Section 1.01 of the Receivables Purchase
        Agreement is amended by deleting the number
        ".375%" and replacing such number with the
        number ".300%".

(d)     Section 2.15 of the Receivables Purchase
        Agreement is amended by deleting the date
        "June 28, 1995" therein and replacing such
        date with the date "June 24, 1996".

(e)     Section 6.02(j)(ii) of the Receivables
        Purchase Agreement is hereby amended by
        deleting the first sentence (but not the
        definition of Adjusted Cash Flow or Total
        Consolidated Debt) and replacing such sentence
        with the following sentence:



    Debt Ratio.  As of the last day of each fiscal quarter
ended after January 1, 1996, the percentage of Adjusted Cash
Flow for the period of four consecutive fiscal quarters then
ended to Total Consolidated Debt as of such day will not be
less than 26%.



                  ARTICLE V. Governing Law.


    This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.


                  ARTICLE VI. Counterparts.

    This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one
agreement, and any of the parties hereto may execute this
Amendment by signing such counterpart.

    IN WITNESS WHEREOF, each of the parties hereto have caused
a counterpart of this Amendment to be duly executed as of the
date first above written.

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FORM 10-Q

Exhibit 2.1(e)   (continued)





                       DELAWARE FUNDING CORPORATION

                       by:  J.P. Morgan Delaware,
                            as attorney-in-fact
                            for Delaware Funding Corporation

                       by:  /s/ Robert J. Henchey            

                            Title: Vice President

                       CONE MILLS CORPORATION

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


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