Sure, they lose money on occasion. But they make much, much, MUCH more in those deals to make up for it. Any time you are dealing with an essentially insolvent customer, the odds of not losing at least some money is always present. But remember that by the time the company closes down for good, that toxic lender has often purchased and converted multiple notes - sometimes over 10. They have made their money 1000 times over before they lose a little at the end.
Toxic lending is a very lucrative business. At least it was, before the SEC started going after them in earnest.
And toxic lenders lending more money to flat-broke customers allowing them to "get current" AND issue BS "news" to drive volume for the toxic lenders to dump into happens all the time.
The toxic lenders also have invented other ways to drive volume to dump into, such as the illegal and completely bogus claims of stock buybacks, none of which ever come true as they can't. But enough ignorant penny stock buyers fall for it that it has been a very lucrative tactic for the toxic lenders for about 4 years now.
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