The companies judge has slated an 'inadequate' warning given to creditors of bag-maker Pam & Frank Industrial that a proposed rescue could collapse if the parent is declared bankrupt. The cash-strapped company was yesterday given three weeks to poll 300 unsecured creditors on the rescue proposal, giving full warning that the deal hinges on a winding-up petition against Pam & Frank International Holdings. 'It will be the very last time I am prepared to give time to ascertain the views of creditors,' Mrs Justice Doreen Le Pichon warned. It is the second time in the space of a week that the judge has criticised the workings of the proposed restructuring. On the last occasion, she attacked the 'dishonest' way a deal was struck to buy out bank debts. Yesterday, the judge said she had not been impressed with a circular sent to unsecured creditors soliciting support for the shares-for-debt proposal. 'That letter is inadequate,' Mrs Justice Le Pichon told the court, pointing to its failure to give a realistic timetable on the proposed scheme. Unsecured creditors had been informed that if there was support for the proposal, shares could be issued by the end of August. 'Whoever wrote this is an optimist,' the judge said. Even if full support was given by the creditors, the scheme could not go ahead until a winding-up petition against the holdings company was resolved - and it would have to win, she said. 'That could take us to the end of the year easily and nowhere is that explained to the unsecured creditors,' the judge said. 'My problem is that it doesn't convey accurately what the situation is likely to be.' A petition to wind up Pam & Frank International was filed by Li Mei Trading this year, amid debts of US$1.31 million allegedly owed as part of a loan. If the company was declared bankrupt, it would thwart plans to give unsecured creditors shares in the listed company to offset debts. The logistics of polling all 300 unsecured creditors were however called into question by counsel for the company, barrister Paul Carolan. He said the previous circular had only three working days to solicit responses before yesterday's court hearing. About 50 creditors were able to respond - most of them suppliers, small companies in the mainland. 'If your ladyship wants to ascertain that these small creditors in China are all on board, that is going to take a long time,' he said. 'All the major creditors are on board.' Pam & Frank Industrial has already struck a deal with 15 banks for HK$55 million in debt to be bought out by investor Smart Interlink. A further HK$60 million is owed by the bag-making arm to a mainland bank, ICBC, the court heard. However, there is full security on the sum. The holdings company reported an attributable loss of HK$28.29 million in the year to March 31, last year.