<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)
SEPTEMBER 30, 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 22 pages)
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons MARC H. KOZBERG
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 90,100
(8) Shared voting power........................ 255,000
(9) Sole dispositive power..................... 90,100
(10) Shared dispositive power.................. 255,000
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 345,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.4%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 2
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons BRUCE E. HENDRY
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 1,132,700
(8) Shared voting power........................ -0-
(9) Sole dispositive power..................... 1,132,700
(10) Shared dispositive power.................. -0-
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 1,132,700
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 4.4%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 3
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons DR. DEMETRE NICOLOFF
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 224,000
(8) Shared voting power........................ 255,000
(9) Sole dispositive power..................... 224,000
(10) Shared dispositive power.................. 255,000
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 479,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.9%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 4
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons G. JAMES SPINNER
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 80,200
(8) Shared voting power........................ 255,000
(9) Sole dispositive power..................... 80,200
(10) Shared dispositive power.................. 255,000
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 335,200
- ---------------------------------------------------- ---------------------------
(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 5
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons ROBERT H. PAYMAR
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 150,000
(8) Shared voting power........................ 255,000
(9) Sole dispositive power..................... 150,000
(10) Shared dispositive power.................. 255,000
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 405,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.6%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 6
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons STANLEY I. BARENBAUM
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 55,000
(8) Shared voting power........................ 255,000
(9) Sole dispositive power..................... 55,000
(10) Shared dispositive power.................. 255,000
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 310,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.2%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 7
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons JAMES A. POTTER
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 40,000
(8) Shared voting power........................ 261,500
(9) Sole dispositive power..................... 40,000
(10) Shared dispositive power.................. 261,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 301,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.2%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 8
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons SUSAN N. POTTER
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 6,500
(8) Shared voting power........................ -0-
(9) Sole dispositive power..................... 6,500
(10) Shared dispositive power.................. -0-
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by each
reporting person. 6,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ < 0.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 9
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons...................... SUMMIT CAPITAL APPRECIATION
I.R.S. Identification Nos. of above persons FUND LP
(entities only)..................................... 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.......................... 255,000
(8) Shared voting power........................ -0-
(9) Sole dispositive power..................... 255,000
(10) Shared dispositive power.................. -0-
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 255,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.0%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... PN
- ---------------------------------------------------- ---------------------------
Page 11
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons SCA MANAGEMENT PARTNERS,
(entities only)..................................... L.L.P.
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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........................ 255,000
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 255,000
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 255,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.0%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... PN
- ---------------------------------------------------- ---------------------------
Page 11
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons...................... DEEPHAVEN OPPORTUNITY
I.R.S. Identification Nos. of above persons TRADING FUND LP
(entities only)..................................... (NONE)
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 265,000
(8) Shared voting power........................ -0-
(9) Sole dispositive power..................... 265,000
(10) Shared dispositive power.................. -0-
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 265,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.0%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... PN
- ---------------------------------------------------- ---------------------------
Page 12
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons...................... DEEPHAVEN INVESTMENT
I.R.S. Identification Nos. of above persons ADVISORS, LLC
(entities only)..................................... 41-1903933
- ---------------------------------------------------- ---------------------------
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... 265,000
(8) Shared voting power........................ -0-
(9) Sole dispositive power..................... 265,000
(10) Shared dispositive power.................. -0-
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 265,000
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 1.0%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... PN
- ---------------------------------------------------- ---------------------------
Page 13
<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 only)..................................... 41-1890776
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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.......................... -0-
(8) Shared voting power........................ 541,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 541,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 541,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... PN
- ---------------------------------------------------- ---------------------------
Page 14
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons IRVIN KESSLER
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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........................ 541,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 541,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 541,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 15
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons EFRAIM GILDOR
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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........................ 541,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 541,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 541,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 16
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons PETER HAJAS
(entities only).....................................
- ---------------------------------------------------- ---------------------------
(2) Check the appropriate box if a member of a (a) X
group (see instructions) ---------------------------
(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........................ 541,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 541,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 541,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 17
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons MARK LYONS
(entities 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........................ 541,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 541,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 541,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 18
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons MERRILL FERGUSON
(entities 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........................ 541,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 541,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 541,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 19
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons...................... CHARMEL LIMITED PARTNERSHIP
I.R.S. Identification Nos. of above persons
(entities only)..................................... 41-1859157
- ---------------------------------------------------- ---------------------------
(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............ NEVADA
- ---------------------------------------------------- ---------------------------
Number of shares beneficially owned by each
reporting person with:
(7) Sole voting power.......................... 524,500
(8) Shared voting power........................ -0-
(9) Sole dispositive power..................... 524,500
(10) Shared dispositive power.................. -0-
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 524,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... PN
- ---------------------------------------------------- ---------------------------
Page 20
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons
(entities only)..................................... CHARMEL ENTERPRISES, INC.
- ---------------------------------------------------- ---------------------------
(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............ NEVADA
- ---------------------------------------------------- ---------------------------
Number of shares beneficially owned by each
reporting person with:
(7) Sole voting power.......................... -0-
(8) Shared voting power........................ 524,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 524,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 524,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... CO
- ---------------------------------------------------- ---------------------------
Page 21
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons MELANIE BARRY
(entities 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........................ 524,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 524,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 524,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.1%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 22
<PAGE>
SCHEDULE 13D
CUSIP NO. 206814 10 5
- ---------------------------------------------------- ---------------------------
(1) Names of reporting persons......................
I.R.S. Identification Nos. of above persons CHARLES BARRY
(entities 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........................ 639,500
(9) Sole dispositive power..................... -0-
(10) Shared dispositive power.................. 639,500
- ---------------------------------------------------- ---------------------------
(11) Aggregate amount beneficially owned by
each reporting person. 639,500
- ---------------------------------------------------- ---------------------------
(12) Check if the aggregate amount in Row (11)
excludes certain shares (see instructions).
- ---------------------------------------------------- ---------------------------
(13) Percent of class represented by amount in
Row (11)............................................ 2.5%
- ---------------------------------------------------- ---------------------------
(14) Type of reporting person (see instructions).... IN
- ---------------------------------------------------- ---------------------------
Page 23
<PAGE>
ITEM 1. SECURITY AND ISSUER
This statement relates to the voting Common Stock, par value $.10 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 since the filing of the
last Schedule 13D Amendment to which this filing is an amendment, except that
James A. Potter has become a partner in SCA Management Partners, L.L.P., the
general partner of Summit Capital Appreciation Fund LP.
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
18. Arbitrade Holdings LLC
19. Deephaven Opportunity Trading Fund LP
20. Deephaven Investment Advisors LLC
21. Irvin Kessler
22. Efraim Gildor
23. Peter Hajas
24. Mark Lyons
25. Merrill Ferguson
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 24
<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. As was reported in the Holder's previous Schedule 13D
Amendment, on May 27, 1999, Marc H. Kozberg, on behalf of the Holders, wrote to
John L. Bakane, President of the Issuer, proposing that management consider a
transaction whereby shareholders of the Company other than management, the 401K
plan of the Company, and the Holders would be offered the opportunity to receive
$8.25 in cash for each share of the Issuer's Common Stock. On June 11, 1999,
Dewey L. Trogdon, Chairman of the Issuer, advised Mr. Kozberg that management of
the Issuer did not wish to pursue the proposal. Nevertheless, the Holders intend
to continue to pursue further discussions with management and may consider other
alternatives consistent with their goal of enhancing shareholder value.
More recently, the Holders requested that management of the Issuer
consider allowing the Holders representation on the Issuer's Board of Directors.
This request was refused. The Holders collectively are the largest shareholder
in the Issuer. The Holder's believe that their representation on the Issuer's
Board would allow for the Issuer's shareholders' concerns regarding the
performance of the Issuer and its management to be more fully heard and
addressed. In response to the management's rejection of the Holders' request for
Board representation, the Holders may consider presentation of a slate of
directors for election at the Issuer's next shareholder meeting. In this regard,
Mr. Kozberg, on behalf of the Holders, has requested that the Issuer provide a
list of the Issuer's shareholders so as to facilitate the Holders' communication
with shareholders on these and other issues of common concern.
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 and engage in other
activities described herein. Except as indicated herein, the Holders do not have
any plans 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 delisting of
the issuer's securities or similar actions. However, the Holders 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.
Attached as Exhibit B is a copy of a press release issued by the
Holders on September 30, 1999.
Page 25
<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 September 27, 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(1) 345,100 1.4%
Bruce E. Hendry 1,132,700 4.4%
Dr. Demetre Nicoloff(1) 479,000 1.9%
G. James Spinner(1) 335,200 1.3%
Robert H. Paymar(1) 405,000 1.6%
Stanley I. Barenbaum(1) 310,000 1.2%
James A. Potter(1)(2) 301,500 1.2%
Susan N. Potter 6,500 < 0.1%
Summit Capital
Appreciation Fund LP 255,000 1.0%
SCA Management
Partners, L.L.P.(1) 255,000 1.0%
The Temple Company,
L.L.P. 135,000 0.5%
Charmel Limited Partnership 524,500 2.1%
Charmel Enterprises, Inc.(4) 524,500 2.1%
Richard Fitzgerald(3) 135,000 0.5%
Charles Barry(3)(4) 639,500 2.3%
Melanie Barry(4) 524,500 2.1%
Arbitrade LLC 336,500 1.3%
Arbitrade Holdings LLC(5)(6) 541,500 2.1%
Deephaven Opportunity
Trading Fund LP 265,000 1.0%
Deephaven Investment
Advisors LLC(6) 265,000 1.0%
Irvin Kessler(5)(6) 541,500 2.1%
Efraim Gildor(5)(6) 541,500 2.1%
Peter Hajas(5)(6) 541,500 2.1%
Mark Lyons(5)(6) 541,500 2.1%
Merrill Ferguson(5)(6) 541,500 2.1%
</TABLE>
(1) Includes 250,000 shares of Common Stock owned by Summit Capital Appreciation
Fund LP
(2) Includes 6,000 shares of Common Stock controlled as custodian f/b/o minor
children and 6,500 shares of Common Stock owned by Susan N. Potter
(3) Includes 135,000 shares of Common Stock owned by The Temple Company, L.L.P.
(4) Includes 524,500 shares of Common Stock owned by Charmel Limited Partnership
(5) Includes 524,500 shares of Common Stock owned by Arbitrade LLC
(6) Includes 265,000 shares of Common Stock owned by Deephaven Opportunity
Trading Fund LP
Page 26
<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 25,485,517 shares of Common Stock outstanding. The Holders, as of
September 27, 1999, collectively own 3,223,400 shares of the Issuer's Common
Stock, constituting approximately 12.6% of the Issuer's 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>
Bruce E. Hendry 06/14/99 Buy 10,000 5.7969
James A. Potter 07/22/99 Buy 5,000 6.1875
Demetre Nicoloff 07/28/99 Buy 10,000 6.0000
Demetre Nicoloff 07/29/99 Buy 15,000 5.9532
Demetre Nicoloff 07/29/99 Buy 4,900 5.9532
Charmel L.P. 07/30/99 Buy 75,000 6.0000
Charmel L.P. 08/02/99 Buy 3,000 5.8890
Demetre Nicoloff 08/02/99 Buy 4,100 5.8890
Marc H. Kozberg 08/02/99 Buy 5,000 5.8890
James A. Potter 08/03/99 Buy 2,000 5.8477
Marc H. Kozberg 08/04/99 Buy 5,100 5.8477
Demetre Nicoloff 08/05/99 Buy 6,000 5.8750
Marc H. Kozberg 08/06/99 Buy 5,000 5.7500
Demetre Nicoloff 08/09/99 Buy 3,000 5.8125
Demetre Nicoloff 08/30/99 Buy 1,000 6.0000
Demetre Nicoloff 09/09/99 Buy 2,000 5.3750
Demetre Nicoloff 09/10/99 Buy 20,000 5.0000
James A. Potter 09/20/99 Buy 5,000 5.1250
Deephaven Opp. Fund 09/22/99 Buy 20,000 5.0938
Deephaven Opp. Fund 09/23/99 Buy 5,000 5.1250
Demetre Nicoloff 09/24/99 Buy 2,000 5.0000
Marc H. Kozberg 09/24/99 Buy 5,000 5.0000
Demetre Nicoloff 09/27/99 Buy 5,000 4.8750
</TABLE>
* Summit Capital Appreciation Fund LP
TOTAL PURCHASES 218,000
TOTAL SALES -0-
-------
NET 218,000
Page 27
<PAGE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS, OR
- ---------------------------------------------------
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
- -------------------------------------------------------
None.
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).
Exhibit B -- Press release issued September 30, 1999.
SIGNATURES
After reasonable inquiry, and to the best of each of the undersigned's
knowledge and belief, each of the undersigned certifies that the information set
forth in this statement is true, complete and correct.
Dated: September 30, 1999
/s/ Bruce E. Hendry
- ------------------------------
Bruce E. Hendry
/s/ Marc H. Kozberg
- ------------------------------
Marc H. Kozberg
/s/ Dr. Demetre 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
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
Page 28
<PAGE>
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
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 Gildor
- ------------------------------
Efraim Gildor
/s/ Peter Hajas
- ------------------------------
Peter Hajas
/s/ Mark Lyons
- ------------------------------
Mark Lyons
/s/ Merrill Ferguson
- ------------------------------
Merrill Ferguson
Page 29
<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 Amendment 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/ Dr. Demetre 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
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
ARBITRADE LLC
By: /s/ Gary Sobczak
-----------------------------
Gary Sobczak
Chief Financial Officer
Page 30
<PAGE>
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 Gildor
- ------------------------------
Efraim Gildor
/s/ Peter Hajas
- ------------------------------
Peter Hajas
/s/ Mark Lyons
- ------------------------------
Mark Lyons
/s/ Merrill Ferguson
- ------------------------------
Merrill Ferguson
Page 31
<PAGE>
EXHIBIT B
PRESS RELEASE
HENDRY, KOZBERG,
INCREASE INTEREST IN
CONE MILLS CORPORATION,
EXPRESS CONCERN OVER
BOARD LEADERSHIP
DATE: SEPTEMBER 30, 1999 AT 7:30 a.m. CT
CONTACT: MARC H. KOZBERG
(612) 376-7035
TICKER: COE
FOR IMMEDIATE RELEASE
A group of investors led by Bruce E. Hendry and Marc H. Kozberg filed an
amendment to their Schedule 13D today stating that they have increased their
interest in Cone Mills Corporation [NYSE: COE] to 3,223,400 shares of common
stock.
The investors' holdings constitute approximately 12.6% of the outstanding common
stock of Cone Mills.
The Schedule 13D discloses that the investors requested representation on Cone
Mills' board of directors, but were refused. The investors may consider
presenting a slate of directors for election at Cone Mills' next shareholder
meeting.
Mr. Kozberg said, "We have requested a list of the company's shareholders for
the purpose of communicating with them regarding issues of common concern,
including possible representation on Cone Mills' board of directors."
"We believe that Cone Mills is undervalued," Mr. Kozberg said. "However, there
is reason to be concerned about the leadership of the board of directors. All
but one of the outside directors have a minimal financial stake in the company.
Cone Mills has not realized a net profit in any fiscal year since 1995. Cone
Mills' stock price peaked in 1993, and has shown a consistent pattern of loss of
value since 1993. Shareholder equity peaked in 1994 and has fallen in each year
subsequent to 1994. The company's performance has lagged well behind its peer
group for several years."
The group of investors led by Mr. Kozberg and Mr. Hendry together constitute
Cone Mills' largest shareholder.
Page 32
