September 27, 2006 1:11 PM, EDT

Frozen Food Express Terminates Lease Agreements

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rozen Food Express Industries on Wednesday announced it will end lease agreements with companies that have ties to the refrigerated carrier’s chief executive officer and chief operating officer.

The companies from whom the carrier had been leasing are affiliated with Frozen Food Express CEO Stoney Stubbs, COO Russell Stubbs and members of their immediate families.

The lease terminations, for which Frozen Food Express will pay a $275,000 early cancellation fee, will be effective Sept. 30, the carrier said in a statement.

In connection with the termination, the company will also purchase 73 tractors from the lessors at a cost of about $3.5 million.

Frozen Food Express will also terminate on Sept. 30 an agreement to rent 82 trailers from the lessors. Under the terms of the cancellation, the carrier is not required to purchase the trailers but could opt to do so.