GE Oil & Gas sues seeking payment on inventory loan to Lafayette businessman

GE Oil & Gas has filed a lawsuit seeking more than $27 million in principal and interest from a 2013 inventory loan the company made to Lafayette businessman Michel Moreno, who with his wife, Tiffany, personally guaranteed the loan, according to the suit filed in U.S. District Court in Lafayette.

GE said in the suit that in May 2013, it loaned $25 million to Moreno to buy “engine inventory and other equipment” to equip Turbine Generation Services for business.

GE said the loan was to be paid in full, with interest, by Sept. 13, 2013. GE said it had to extend the payoff date three times, stretching the loan period to the end of December, according to the suit.

On April 7, GE filed the lawsuit that seeks payment of the original loan amount and the interest. By the end of January, GE said, Moreno and Turbine Generation Services owed more than $27.4 million.

Moreno has not filed a response to the lawsuit.

Messages left last week and on Tuesday at the office of Turbine Generation Services’ agent and attorney, Frank Slavich III, were not returned.

Turbine Generation Services was formerly known as Green Field Power Generation, according to the Louisiana Secretary of State’s Office, which registers businesses.

Green Field Power Generation was part of the Moreno majority-owned Green Field Energy Services, which filed for bankruptcy in October and is undergoing liquidation proceedings in U.S. Bankruptcy Court in Delaware.

GE’s lawsuit, which did not mention the Green Field companies or the bankruptcy, said Turbine Generation Services and Moreno owe the principal of $25 million and the interest that continues to accrue.

GE said the loan interest was 12 percent annually compounded quarterly through the December maturity date.

GE said that since loan default, the interest rate has been at an annual rate of 20 percent, compounded quarterly.

GE said that as of Jan. 31, the Morenos and Turbine Generation Services owed about $27.5 million.