The US Bankruptcy Court gave an order to Michael Olaf Stephenson, Chapter 7 trustee for Home Valley Bancorp Inc. to obtain DIP financing on April 23, 2013. As per the order, the trustee has been authorized to obtain a term loan in the amount of $0.15 million to be provided to the bankruptcy estate from Redwood Capital Bancorp. The DIP loan would carry an interest rate 5% p.a. The DIP facility would mature either on October 31, 2016 or the sixtieth day after lender notifies the Trustee and counsel in writing that no further advances will be made, whichever is earlier.

The loan proceeds are to be used, in part, to pay special counsel's attorney fees.