This is the closest to being right so far.
Creditor was owed $200 million for the property. Owner is forced to sell. Land goes up for auction. Any money bid, less auction fees, goes to the Creditor.
Creditor bids $100k, probably to cover auction fees. No one else put in a bid because Creditor can just keep increasing their bid up to the $200 million owed (they essentially get it back, so it a wash to them).
Effectively, the land was sold for $200 million. Nobody thinks it’s worth that much, not even the Creditor. But the must feel it’s worth more holding onto than what it would bring at auction.
