Bankrupt Planemaker Thrush to Sell to Sole Bidder for $5 Million

Bankrupt Thrush Aircraft Inc. plans to sell its small plane manufacturing business to HHM Aviation Financing for a little more than $5 million after failing to attract higher offers.

HHM submitted earlier this month an initial “stalking horse” offer of $3.9 million in cash and a $1.15 million promissory note—all payable to Thrush’s lender Wells Fargo Bank NA. To challenge HHM’s starting price, a qualified bidder would have had to submit an offer higher than $6.4 million, court papers show.

The company did not receive a qualified purchase bid topping the one submitted by HHM, it said in an Oct. ...