Some investors are interested in distressed credits due to one or more of these scenarios:
• They think that the debtor's assets can be revived, with the potential of getting them up and running again.
• The debtor is this investor's competitor, and this is a great chance to convert the debt to equity.
• They're sure that, upon the company's liquidation, there will be enough money to cover for the credits they purchased.
• The investor is sure that the final result of the credit recovery will cover purchase cost and lead to profit.
More: https://www.youtube.com/watch?v=