LYNCHBURG -- Creditors of Craddock-Terry Shoe Corp. have withdrawn their bid to oust a court-sanctioned consultant to the company's bankruptcy reorganization.

But an official with the consultant, A.E. Getzler and Co. Inc., predicted during a recess of proceedings in U.S. bankruptcy court that the committee of creditors will again object to the Getzler company's role.

"They still don't like us," said J.E. Farkas, a vice president of the firm's Chicago office.

Creditors have complained that the Getzler company has withheld vital information both from the creditors and from the Office of the U.S. Trustee, but an attorney for the creditors said that more information has been presented during recent discussions in New York.

"The committee felt we were getting some improved cooperation and information," Lynchburg attorney George Fralin said last Thursday.

But Fralin said the Getzler firm's role in the reorganization of Craddock-Terry will be reviewed on a month-by-month basis, and further objections could be lodged.

"You've just got to take it on a daily basis," Fralin said. "At least the committee's satisfied at this point. We'll probably know more about this in March or at the end of February."

Craddock-Terry, once an important employer throughout Southside Virginia, filed in October for protection from creditors under Chapter 11 of federal bankruptcy laws, saying that as of Aug. 29 it had assets of $44 million and liabilities of $48 million.

In recent years, the company has closed plants in Dillwyn, Lawrenceville, Blackstone, Chase City, Gretna, Halifax, Farmville and Victoria.

Craddock-Terry has said it wants to reorganize by selling off many of its properties and maintaining a business centered around a mail-order operation, Hill Bros. Inc.

{On Friday, United Press International reported that Liberty University, rebuffed in its first attempt to purchase the Craddock-Terry headquarters building in Lynchburg, worked out a deal to buy the property by agreeing to use the building for industrial purposes.

{And, in a gesture to Lynchburg officials who feared the loss of the property from city tax rolls, the Rev. Jerry Falwell's "Old Time Gospel Hour" agreed to offer a 22.59-acre, industrially zoned warehouse site for sale. Falwell's church runs the university.

{Mark DeMoss, a spokesman for Falwell, said the deal was struck Friday, 10 days after the City Council denied a request by Craddock-Terry to change the property's zoning so that the sale to Liberty could go through.}