Frozen Food Express terminates leases
Sep 27, 2006 8:46 AM, from staff and wire reports
Frozen Food Express Industries Inc plans to terminate all existing equipment lease arrangements with entities affiliated with its chief executive officer, Stoney M “Mit" Stubbs Jr, Chief Operating Officer S Russell Stubbs, and members of their immediate family. Terminations will take effect Sept 30, 2006.
This action comes with the recommendation of the company's Audit Committee and board of directors.
Since many of the leases stipulate they are not subject to cancellation, the company has agreed to pay a lease cancellation fee to the lessors. The company will purchase from the lessors 73 tractors at fair market value. Purchase price for all 73 tractors is expected to be about $3.5 million. In addition, the firm has agreed to pay the lessors an early lease termination fee of approximately $275,000.
Frozen Food Express also will terminate the monthly leases of 82 trailers from its lessors. These terminations also will take effect Sept 30, 2006.
