04/10/2015 4:55PM

Creditors seek $230M from stable founder Moreno

Email

A U.S. trustee for the creditors of a bankrupt company owned by Mike Moreno, the founder of Southern Equine Stables, has said in a petition he is seeking $230 million from Moreno and his affiliated companies, claiming Moreno breached his fiduciary duties to the company to the detriment of its creditors.

The petition, filed April 6 in U.S. Bankruptcy Court in Delaware, revolves around the bankruptcy and dissolution of a company called Green Field Energy Services, which Moreno created in 2011 from the assets of another company. Green Field, which specialized in oil-field services and hydraulic fracturing, filed for Chapter 11 bankruptcy in 2013 after it defaulted on $330 million in debt. The Chapter 11 bankruptcy was converted into a Chapter 7 bankruptcy in 2014, and all of the company’s assets were liquidated.

In the petition filed with the court, U.S. trustee Alan Halperin claimed Moreno “used a constellation of satellite companies to provide services” to Green Field even though he knew the company’s business model could not be sustained. Halperin claimed the companies, which were controlled by Moreno, were used to extract money from Green Field for his own benefit and the benefit of his associates before it collapsed.

Trustees are appointed to seek the maximum returns for a company’s creditors through petitions to the bankruptcy court. Last year, an examiner appointed by the bankruptcy court also had been critical of Moreno’s management of Green Field during its brief lifespan.

Moreno, a resident of Louisiana, founded Southern Equine in the late 1990s. The stable, whose principal trainer is Eric Guillot, has campaigned Grade 1 winners Moreno, Champagne D’Oro, Mi Sueno, and Santa Teresita. In 2008, Moreno bought out a partner in the mare Better Than Honour by bidding $14 million for her at the Keeneland November sale, a world-record auction price for a mare. Moreno had owned 70 percent of the mare when she went into the ring.

TRacingLifeMore More than 1 year ago
Poor Better Than Honour. Once her babies went to Eric Guillot, they turned into pumpkins.
mikey More than 1 year ago
Will the sarge loose his stripes
Casey Gould More than 1 year ago
Sounds like the gumbo ran out of flame. Cajun heat Is on there tail they've said it for yrs he's got funny $ when things look to good they probably are. Back to the bush tracks.
Steve More than 1 year ago
Moreno is one guy I could never figure out. He poured millions into racing with little success relative to how much he spent, and he continued to employ a trainer who is average at best, below average most of the time. For years he continued to pour the money in and he had many multi-hundred thousand dollar horses who couldn't outrun a fat man. It would be interesting to know how many millions he has lost buying horses
Chas More than 1 year ago
It looks like Southern Equine days in the racing game figure to be running out if Moreno has to come up with that kind of money...I read that in May at the MidAlantic two yr. old in training sale, there are going to be some of Southern Equine horses in that sale...interesting to see what they will go for...
Paul McAleavey More than 1 year ago
Moreno is an amazing horse? He has three wins in over 20 starts with a few also ran finishes. He's an allowance optional claimed that has been running over his head unless he gets a speed track and he's the lone speed. But the fact that they invested 230 million and have idk 10 million is ridiculous. But being people mentioned top trainers. I'd say pletcher and Baffert get 100 new horse a year that cost 100-200 million a year yet the top trainer earns 25 million a year. Give me 100-200 million in horses to train and I'd easily do the same. They lose 90% of their money. It's basically a scam. Fast talkers promise the world and sone years certain owners have a better roi than others in certain trainers' barns.
tommy . More than 1 year ago
Moreno is an amazing horse!!! you just donno horses. It takes high VO2 and lactate to do what he does!!! Shared Belief was set up by Moreno!!! Without Moreno Shared Belief down't win!!!!
tommy More than 1 year ago
I'm the only one who is allowed to say Moreno is an amazing horse!!! This horse has made me over $50,000 last year !!!! Last year was the first year I started getting into horse racing and I didn't know how to play pick 3, pick 4, and pick 6. So I played $10 pick 4, $10 pick 3 and $2 pick 6 !! And I only pick one horse in each race , simply by betting the horse with the highest vo2 max and lactate threshold !!! Hess a couple people in the track saying I'm the best handicapper !! I saw a fat guy that looks like you looking at me because you heard me screaming let's go Moreno, use your high vo2 max to finish him off!!!!
tommy . More than 1 year ago
Moreno is nothing but cheap speed and will be a 10k claimer soon!!!!
tommy More than 1 year ago
Moreno is an amazing horse !!!!!!! You can't rely on one horse to support a family, not to mention a whole stable !!!!!!
Tim Sr. More than 1 year ago
All the money this guy poured into thoroughbreds and all the success they can garner was Moreno, Champagne d'Oro and Santa Teresita. Why? With that much money, albeit other peoples they continued to employ Erci Guillot as their trainer. He can't train a cricket. There is a reason the Pletcher's, the Clements, the Maker's, the Mott's , the Baffert's, Mandella's, etc and on and on and on win, win the stakes on a regular basis. And that's the best they can do. No wonder they're going broke.
jimf552 More than 1 year ago
Childhood friends. #Loyalty But certainly agree with your comments.
Chas More than 1 year ago
Of course, let's not forget that the trainers you mentioned like Baffert and Pletcher, win as much as they do in stakes, is they get top horses which is something many others do not get....