^redacted‌ , thanks for the tag, but chapter 11 is an area i know very little about, so I can’t comment. And i'm biased against distressed businesses as well. Don’t pay to take someone else's problem off their hands unless you have a strong track record of growing a business from scratch or you have a turnaround black belt.

Chapter 11 sub V is essentially a restructure of debt. You can sell equity to new owners but all the cashflow has to go to the debt holders until the court-approved plan is completed. Plans range from 3-5 years, generally, so ask how far into the plan the business is. Make sure they have stayed compliant the entire process and made all secured payments. After the plan is over, the business should emerge debt free. I have no idea about financing the purchase of a business in this position though. It would probably have to be non-traditional lending or all equity from investors I would assume.