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Alter Ego Claims and the Bankruptcy Estate: Lessons from 'In re Signia, Ltd.'

In In re Signia, Ltd., No. 24-1214 TBM (Bankr. D. Colo. May 14, 2025), the U.S. Bankruptcy Court for the District of Colorado weighed in on whether alter ego veil-piercing claims become property of the bankruptcy estate upon a debtor's filing and whether the debtor-in-possession has exclusive standing to pursue the claims.

Judge Thomas B. McNamara concluded that such claims belong to creditors, not the estate—making them fair game even after bankruptcy.

In this Westlaw Today article, Loeb Restructuring & Bankruptcy partner Bethany Simmons and associate Noah Weingarten discuss a bankruptcy issue relating to whether alter ego veil-piercing claims become property of the bankruptcy estate and whether the debtor-in-possession has exclusive standing to pursue the claims.

To read the full article, please visit Westlaw Today’s website.