Case timeline

1. Jul 222026
   Hearings: Court authorizes $2.15 million direct payment to Prosperity Bank

   The court granted on the record Prosperity Bank and the Cornerstone parties’ contested request to route PB Materials stock consideration directly to Prosperity, according to the July 22 hearing disposition. The direct-payment motion provides for an initial $2,154,520.51 payment once the parties’ settlement becomes effective, with each payment reducing Prosperity’s allowed claim dollar-for-dollar. That claim totaled $51.1 million as of April 25, 2025, before additional interest, fees and other adjustments.

   The reorganized debtors had asked the court to preserve the escrowed proceeds, arguing that the proposed settlement between non-debtor parties improperly disposes of estate property and would dissipate proceeds implicated in pending fraudulent-transfer claims concerning 6,000 retained PB Materials shares and 58,000 shares sold to Cornerstone. Their objection also argued that the confirmed plan did not authorize this direct-distribution mechanism. The ruling allows the settlement economics to advance despite those challenges and redirects $2.15 million toward Prosperity’s secured recovery while the related adversary litigation remains pending.

   Sources and provenanceJuly 22, 2026