From a public policy standpoint, you don't want local government authorities taking a quick buck now instead of (on average) more money a few years later.

But to an elected politician that might not even be in office in a few years, money now is worth more at any cost than money later.

A gov agency is best suited to ride these things out because their cost of capital is among the lowest. Generally dumb for a county to sell an asset to a hedge fund: the HF has to pay more in interest than a county does just to pay you money now. There's nothing to do here except wait, nothing to whip in shape and make more profitable.

(Also cities shouldn't own stadiums, that's a gamble on the success of your local sports team and solvency of whomever you sell the naming rights to)

The buyers of these claims often have inside information.

By selling during bankruptcy they gambled that the "experts" were wrong and it turn out not to be the case.

That's why exchanges often suspend shares during bankruptcy: To make it clear that price manipulation and outright corruption is likely.

I have both a claim in FTX and shares in a suspended ("bankrupt") company listed outside the US. I just ride these things out because I don't need the money right now.