<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D AMENDMENT
Under the Securities Exchange Act of 1934
CONE MILLS CORPORATION
----------------------
(Name of Issuer)
Common Stock, $.10 par value
----------------------------
(Title of Class of Securities)
206814 10 5
-----------
(CUSIP Number)
Albert A. Woodward, Esq.
Maun & Simon, PLC
2000 Midwest Plaza Building West
801 Nicollet Mall
Minneapolis, Minnesota 55402
(612) 904-7400
--------------
(Name, Address and Telephone Number
of Person Authorized to Receive
Notices and Communications)
February 9, 1999
----------------
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check
the following box [ ].
(Cover page continued on next 17 pages)
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities MARC H. KOZBERG
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 50,000
(8) Shared voting power.............................. 220,000
(9) Sole dispositive power........................... 50,000
(10) Shared dispositive power........................ 220,000
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 270,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.1%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 2 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities BRUCE E. HENDRY
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................1,060,700
(8) Shared voting power.............................. -0-
(9) Sole dispositive power........................... 1,060,700
(10) Shared dispositive power........................ -0-
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 1,060,700
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 4.2%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 3 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities DR. DEMETRE NICOLOFF
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 103,000
(8) Shared voting power.............................. 220,000
(9) Sole dispositive power........................... 103,000
(10) Shared dispositive power........................ 220,000
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 323,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.3%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 4 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities only) G. JAMES SPINNER
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 50,000
(8) Shared voting power.............................. 220,000
(9) Sole dispositive power........................... 50,000
(10) Shared dispositive power........................ 220,000
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 270,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.1%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 5 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities ROBERT H. PAYMAR
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 100,000
(8) Shared voting power.............................. 220,000
(9) Sole dispositive power........................... 100,000
(10) Shared dispositive power........................ 220,000
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 320,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.3%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 6 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities STANLEY I. BARENBAUM
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ -0-
(8) Shared voting power.............................. 220,000
(9) Sole dispositive power........................... -0-
(10) Shared dispositive power........................ 220,000
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 220,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 0.9%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 7 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................ SUMMIT CAPITAL
I.R.S. Identification Nos. of above persons (entities only)APPRECIATION FUND LP
41-1822728
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) WC
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. Minnesota
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 220,000
(8) Shared voting power.............................. -0-
(9) Sole dispositive power........................... 220,000
(10) Shared dispositive power........................ -0-
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 220,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 0.9%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... PN
- -------------------------------------------------------------------------------
Page 8 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities SCA MANAGEMENT
only)..................................................... PARTNERS, L.L.P.
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) HC
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. Minnesota
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ -0-
(8) Shared voting power.............................. 220,000
(9) Sole dispositive power........................... -0-
(10) Shared dispositive power........................ 220,000
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 220,000
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 0.9%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... PN
- -------------------------------------------------------------------------------
Page 9 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................ ARBITRADE LLC
I.R.S. Identification Nos. of above persons (entities 36-3997384
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) WC
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. Illinois
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 279,100
(8) Shared voting power.............................. -0-
(9) Sole dispositive power........................... 279,100
(10) Shared dispositive power........................ -0-
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 279,100
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.1%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... PN
- -------------------------------------------------------------------------------
Page 10 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................ARBITRADE HOLDINGS LLC
I.R.S. Identification Nos. of above persons (entities 41-1890776
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) HC
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. Illinois
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 370,600
(8) Shared voting power.............................. -0-
(9) Sole dispositive power........................... 370,600
(10) Shared dispositive power........................ -0-
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 370,600
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.4%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... PN
- -------------------------------------------------------------------------------
Page 11 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................ DEEPHAVEN OPPORTUNITY
I.R.S. Identification Nos. of above persons (entities only) TRADING FUND LP
(NONE)
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) WC
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. BRITISH VIRGIN
ISLANDS
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 91,500
(8) Shared voting power.............................. -0-
(9) Sole dispositive power........................... 91,500
(10) Shared dispositive power........................ -0-
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 91,500
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 0.4%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... PN
- -------------------------------------------------------------------------------
Page 12 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................ DEEPHAVEN INVESTMENT
I.R.S. Identification Nos. of above persons (entities only) ADVISORS LLC
41-1903933
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) HC
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. Delaware
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ 91,500
(8) Shared voting power.............................. -0-
(9) Sole dispositive power........................... 91,500
(10) Shared dispositive power........................ -0-
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 91,500
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 0.4%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... PN
- -------------------------------------------------------------------------------
Page 13 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities IRVIN KESSLER
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ -0-
(8) Shared voting power.............................. 370,600
(9) Sole dispositive power........................... -0-
(10) Shared dispositive power........................ 370,600
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 370,600
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.5%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 14 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities only) EFRAIM GUILDON
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting person with:
(7) Sole voting power................................ -0-
(8) Shared voting power.............................. 370,600
(9) Sole dispositive power........................... -0-
(10) Shared dispositive power........................ 370,600
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 370,600
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.5%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 15 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities only) PETER HAJAS
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ -0-
(8) Shared voting power.............................. 370,600
(9) Sole dispositive power........................... -0-
(10) Shared dispositive power........................ 370,600
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 370,600
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.5%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
Page 16 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities MARK LYONS
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group
(see instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization..................USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................-0-
(8) Shared voting power..............................370,600
(9) Sole dispositive power...........................-0-
(10) Shared dispositive power........................370,600
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 370,600
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)...1.5%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions)..........IN
- -------------------------------------------------------------------------------
Page 17 of 34
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- -------------------------------------------------------------------------------
(1) Names of reporting persons............................
I.R.S. Identification Nos. of above persons (entities MERRILL FERGUSON
only).....................................................
- -------------------------------------------------------------------------------
(2) Check the appropriate box if a member of a group (see
instructions) (a) X
--------------------
(b)
- -------------------------------------------------------------------------------
(3) SEC use only..........................................
- -------------------------------------------------------------------------------
(4) Source of funds (see instructions) PF
- -------------------------------------------------------------------------------
(5) Check if disclosure of legal proceedings is required
pursuant to Items 2(d) or 2(e).
- -------------------------------------------------------------------------------
(6) Citizenship or place of organization.................. USA
- -------------------------------------------------------------------------------
Number of shares beneficially owned by each reporting
person with:
(7) Sole voting power................................ -0-
(8) Shared voting power.............................. 370,600
(9) Sole dispositive power........................... -0-
(10) Shared dispositive power........................ 370,600
- -------------------------------------------------------------------------------
(11) Aggregate amount beneficially owned by each reporting
person. 370,600
- -------------------------------------------------------------------------------
(12) Check if the aggregate amount in Row (11) excludes
certain shares (see instructions).
- -------------------------------------------------------------------------------
(13) Percent of class represented by amount in Row (11)... 1.5%
- -------------------------------------------------------------------------------
(14) Type of reporting person (see instructions).......... IN
- -------------------------------------------------------------------------------
</TABLE>
Page 18 of 34
<PAGE>
ITEM 1. SECURITY AND ISSUER
This statement relates to the voting Common Stock, par value $.01 of
Cone Mills Corporation (the "Issuer"), a North Carolina corporation, having
its principal place of business at 3101 North Elm Street, Greensboro, North
Carolina 27415-6540.
ITEM 2. IDENTITY AND BACKGROUND
This statement is filed jointly by the individuals and entity
identified below (collectively the "Holders"). There have been no changes in
the background, occupations, or addresses of the Holders listed as numbers 1
through 16 below since the filing of the Schedule 13D, to which this filing
is an amendment. The Holders listed at numbers 17 through 25 are new members
of the group, and required information is provided below.
1. Marc H. Kozberg
2. Bruce E. Hendry
3. James A. Potter
4. Susan N. Potter
5. Dr. Demetre Nicoloff
6. G. James Spinner
7. Robert H. Paymar
8. Stanley I. Barenbaum
9. Summit Capital Appreciation Fund LP
10. SCA Management Partners, L.L.P.
11. The Temple Company, L.L.P.
12. Charmel Limited Partnership
13. Charmel Enterprises, Inc.
14. Richard Fitzgerald
15. Charles Barry
16. Melanie Barry
17. Arbitrade LLC
1712 Hopkins Crossroads
Minnetonka, MN 55305
Arbitrade LLC is an Illinois limited liability company. Its sole member
is Arbitrade Holdings LLC.
18. Arbitrade Holdings LLC
1712 Hopkins Crossroads
Minnetonka, MN 55305
Arbitrade Holdings LLC is a Delaware limited liability company. Its
members are Irvin Kessler (33%), Efraim Guildon (27%), Peter Hajas
(27%), Mark Lyons (6.5%) and Merrill Ferguson (6.5%). Arbitrade
Holdings LLC is the sole member of Arbitrade LLC and the sole member of
Deephaven Investment Advisors LLC.
Page 19 of 34
<PAGE>
19. Deephaven Opportunity Trading Fund LP
1712 Hopkins Crossroads
Minnetonka, MN 55305
Deephaven Opportunity Trading Fund LP is a limited partnership
organized under the laws of the British Virgin Islands. Its general
partner is Deephaven Investment Advisors LLC.
20. Deephaven Investment Advisors LLC
1712 Hopkins Crossroads
Minnetonka, MN 55305
Deephaven Investment Advisors LLC is a Delaware limited liability
company. It is the general partner of Deephaven Opportunity Trading
Fund LP. Its sole member is Arbitrade Holdings LLC.
21. Irvin Kessler
1712 Hopkins Crossroads
Minnetonka, MN 55305
Mr. Kessler is self-employed and is an investor.
22. Efraim Guildon
1712 Hopkins Crossroads
Minnetonka, MN 55305
Mr. Guildon is self-employed and is an investor.
23. Peter Hajas
1712 Hopkins Crossroads
Minnetonka, MN 55305
Mr. Hajas is self-employed and is an investor.
24. Mark Lyons
1712 Hopkins Crossroads
Minnetonka, MN 55305
Mr. Lyons is self-employed and is an investor.
25. Merrill Ferguson
1712 Hopkins Crossroads
Minnetonka, MN 55305
Mr. Ferguson is self-employed and is an investor.
None of the above-referenced Holders has, during the past five
years, been convicted in a criminal proceeding, excluding traffic violations
or similar misdemeanors, nor have any of the Holders been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction
where, as a result of such proceeding, any of the Holders became subject to a
judgment, decree, or final order enjoining future violations of, or
prohibiting or mandating activities subject to federal or state securities
laws or finding any violation with respect to such laws.
Page 20 of 34
<PAGE>
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The shares of Common Stock of the Issuer were purchased by each
Holder from available cash resources or working capital.
ITEM 4. PURPOSE OF TRANSACTION.
See Item 3. The Holders have acquired the Common Stock of the Issuer
for investment purposes. The Holders may acquire additional shares of Common
Stock of the Issuer and specifically reserve the right to sell all or any
portion of the Common Stock if they deem it to be in their best interest. The
Holders intend to explore opportunities to enhance shareholder value and to
that end intend to explore the retention of an investment banking firm. While
the Holders do not have any plans or proposals respecting extraordinary
corporate transactions effecting the Issuer, the sale of its assets, changes
in its management, capitalization, dividend policy, business or corporate
structure, charter or bylaws or the listing of the issuer securities or
similar actions, they intend to consider all possibilities of enhancing
shareholder value, including but not limited to possible sale of the Issuer,
acquisition of the Issuer or acquisition of a controlling interest in the
Issuer. The Holders, through Mr. Kozberg and Mr. Hendry, intend to actively
monitor the management and business of the Issuer and specifically reserve
the right to communicate with management and other shareholders of the Issuer
regarding matters of common concern, including consideration of transactions
such as those outlined above.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Page 21 of 34
<PAGE>
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Information with respect to the aggregate number, and percentage, of
all outstanding Common Stock beneficially owned as of January 13, 1999 by
each of the Holders is set forth below:
<TABLE>
<CAPTION>
Number of Shares Percentage of
Name of Common Stock Outstanding Shares
---- --------------- ------------------
<S> <C> <C>
Marc H. Kozberg* 270,000 1.1%
Bruce E. Hendry 1,060,700 4.2%
Dr. Demetre Nicoloff* 323,000 1.3%
G. James Spinner* 270,000 1.1%
Robert H. Paymar* 320,000 1.3%
Stanley I. Barenbaum* 200,000 0.8%
James A. Potter 22,000 0.1%
Susan N. Potter 2,500 LESS THAN 0.1%
Summit Capital
Appreciation Fund LP 220,000 0.9%
SCA Management
Partners, L.L.P.* 220,000 0.9%
The Temple Company,
L.L.P. 104,000 0.4%
Charmel Limited Partnership 310,000 1.2%
Charmel Enterprises, Inc.^ 310,000 1.2%
Richard Fitzgerald# 104,000 0.4%
Charles Barry#^ 414,000 1.6%
Melanie Barry^ 310,000 1.2%
Arbitrade LLC 279,100 1.1%
Arbitrade Holdings LLC+@ 370,600 1.5%
Deephaven Opportunity
Trading Fund LP 91,500 0.4%
Deephaven Investment
Advisors LLC@ 91,500 0.4%
Irvin Kessler+@ 370,600 1.5%
Efraim Guildon+@ 370,600 1.5%
Peter Hajas+@ 370,600 1.5%
Mark Lyons+@ 370,600 1.5%
Merrill Ferguson+@ 370,600 1.5%
</TABLE>
* Includes 220,000 shares of Common Stock owned by Summit Capital Appreciation
Fund LP.
# Includes 104,000 shares of Common Stock owned by The Temple Company,
L.L.P.
^ Includes 310,000 shares of Common Stock owned by Charmel Limited
Partnership
+ Includes 279,100 shares of Common Stock owned by Arbitrade LLC
@ Includes 91,500 shares of Common Stock owned by Deephaven Opportunity
Trading Fund LP
Page 22 of 34
<PAGE>
The Holders' response to Items 7 through 13 of the cover pages of
the statement are incorporated herein by reference. Cover pages have been
included in this filing only to the extent a Holder's beneficial ownership in
the securities of the Issuer has changed since the most recent filing of a
Schedule 13D amendment to which this statement is an amendment.
According to the Issuer's most recent Form 10-Q filing with the SEC,
the Issuer has 25,432,233 shares of Common Stock outstanding. The Holders, as
of February 10, 1999, collectively own 2,390,300 shares of the Issuer's
Common Stock, constituting approximately 9.4% of all of the outstanding
voting Common Stock. Transactions by the Holders in Common Stock of the
Issuer not previously reported by the Holders in a Schedule 13D filing
relating to the securities of the Issuer are as follows:
<TABLE>
<CAPTION>
Type of Number of Price/
Name Date Transaction Shares Share
---- ---- ----------- ------ -----
<S> <C> <C> <C> <C>
Deephaven LP* 11/27/98 Buy 100,000 4.2500
Deephaven LP 01/04/99 Sell (8,500) 5.7500
Marc H. Kozberg 01/18/99 Buy 4,300 4.6250
Demetre Nicoloff 01/22/99 Buy 28,000 5.0000
Marc H. Kozberg 01/27/99 Buy 5,000 5.0000
Bruce Hendry 01/28/99 Buy 40,000 5.0000
Bruce Hendry 01/29/99 Buy 20,000 5.0000
Marc H. Kozberg 01/29/99 Buy 30,700 4.8950
Demetre Nicoloff 01/29/99 Buy 3,400 4.8750
SCAP, LP^ 01/29/99 Buy 20,000 4.8750
Demetre Nicoloff 02/01/99 Buy 1,600 4.7500
Arbitrade LLC 02/02/99 Buy 25,000 4.8750
Arbitrade LLC 02/05/99 Buy 13,000 4.8750
Arbitrade LLC 02/08/99 Buy 4,000 4.8750
Arbitrade LLC 02/09/99 Buy 227,100 4.8744
Arbitrade LLC 02/10/99 Buy 10,000 4.8750
TOTAL PURCHASES 532,100
TOTAL SALES (8,500)
NET 523,600
</TABLE>
* Deephaven Opportunity Trading Fund LP
^ Summit Capital Appreciation Fund, LP
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS, OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
None.
Page 23 of 34
<PAGE>
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit A -- Agreement as to joint filing pursuant to Regulation
Section 240.13d-1(f)(1)(iii).
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Bruce E. Hendry
---------------------------------------
Bruce E. Hendry
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Marc H. Kozberg
---------------------------------------
Marc H. Kozberg
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Demetre Nicoloff
---------------------------------------
Dr. Demetre Nicoloff
Page 24 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ G. James Spinner
---------------------------------------
G. James Spinner
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Robert H. Paymar
---------------------------------------
Robert H. Paymar
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Stanley I. Barenbaum
---------------------------------------
Stanley I. Barenbaum
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ James A. Potter
---------------------------------------
James A. Potter
Page 25 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Susan N. Potter
---------------------------------------
Susan N. Potter
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
SUMMIT CAPITAL APPRECIATION
FUND LP
By: SCA Management Partners L.L.P.
By: /s/ Marc H. Kozberg
---------------------------------------
Marc H. Kozberg, a partner
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
SCA MANAGEMENT PARTNERS, L.L.P.
By: /s/ Marc H. Kozberg
---------------------------------------
Marc H. Kozberg, a partner
Page 26 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
THE TEMPLE COMPANY, L.L.P.
By: /s/ Charles Barry
---------------------------------------
Charles Barry, a partner
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
CHARMEL LIMITED PARTNERSHIP
By: Charmel Enterprises, Inc.
By: /s/ Charles Barry
---------------------------------------
Charles Barry, President
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
CHARMEL ENTERPRISES, INC.
By: /s/ Charles Barry
---------------------------------------
Charles Barry, President
Page 27 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Richard Fitzgerald
---------------------------------------
Richard Fitzgerald
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Charles Barry
---------------------------------------
Charles Barry
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Melanie Barry
---------------------------------------
Melanie Barry
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
ARBITRADE LLC
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
Page 28 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
ARBITRADE HOLDINGS LLC
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
DEEPHAVEN OPPORTUNITY TRADING
FUND LP
By: Deephaven Investment Advisors LLC
Its General Partner
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
DEEPHAVEN INVESTMENT
ADVISORS LLC
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
Page 29 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Irvin Kessler
---------------------------------------
Irvin Kessler
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Efraim Guildon
---------------------------------------
Efraim Guildon
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Peter Hajas
---------------------------------------
Peter Hajas
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Mark Lyons
---------------------------------------
Mark Lyons
Page 30 of 34
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: February 15, 1999
/s/ Merrill Ferguson
---------------------------------------
Merrill Ferguson
Page 31 of 34
<PAGE>
EXHIBIT A
AGREEMENT AS TO JOINT FILING
Pursuant to Regulation Section 240.13d-1(f)(1)(iii), the undersigned
acknowledge and agree that the attached Schedule 13D relating to Cone Mills
Corporation is being filed on behalf of each of the undersigned.
/s/ Bruce E. Hendry
---------------------------------------
Bruce E. Hendry
/s/ Marc H. Kozberg
---------------------------------------
Marc H. Kozberg
/s/ Demtre Nicoloff
---------------------------------------
Dr. Demetre Nicoloff
/s/ G. James Spinner
---------------------------------------
G. James Spinner
/s/ Robert H. Paymar
---------------------------------------
Robert H. Paymar
/s/ Stanley I. Barenbaum
---------------------------------------
Stanley I. Barenbaum
/s/ James A. Potter
---------------------------------------
James A. Potter
/s/ Susan N. Potter
---------------------------------------
Susan N. Potter
SUMMIT CAPITAL APPRECIATION
FUND LP
By: SCA Management Partners L.L.P.
By: /s/ Marc H. Kozberg
---------------------------------------
Marc H. Kozberg, a partner
SCA MANAGEMENT PARTNERS, L.L.P.
By: /s/ Marc H. Kozberg
---------------------------------------
Marc H. Kozberg, a partner
Page 32 of 34
<PAGE>
THE TEMPLE COMPANY, L.L.P.
By: /s/ Charles Barry
---------------------------------------
Charles Barry, a partner
CHARMEL LIMITED PARTNERSHIP
By: Charmel Enterprises, Inc.
By: /s/ Charles Barry
---------------------------------------
Charles Barry, President
CHARMEL ENTERPRISES, INC.
By: /s/ Charles Barry
---------------------------------------
Charles Barry, President
/s/ Richard Fitzgerald
---------------------------------------
Richard Fitzgerald
/s/ Charles Barry
---------------------------------------
Charles Barry
/s/ Melanie Barry
---------------------------------------
Melanie Barry
Page 33 of 34
<PAGE>
ARBITRADE LLC
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
ARBITRADE HOLDINGS LLC
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
DEEPHAVEN OPPORTUNITY TRADING
FUND LP
By: Deephaven Investment Advisors LLC
Its General Partner
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
DEEPHAVEN INVESTMENT
ADVISORS LLC
By: /s/ Gary Sobczak
---------------------------------------
Gary Sobczak
Chief Financial Officer
/s/ Irvin Kessler
---------------------------------------
Irvin Kessler
/s/ Efraim Guildon
---------------------------------------
Efraim Guildon
/s/ Peter Hajas
---------------------------------------
Peter Hajas
/s/ Mark Lyons
---------------------------------------
Mark Lyons
/s/ Merrill Ferguson
---------------------------------------
Merrill Ferguson
Page 34 of 34
