Frozen Food Express announced that it is ending equipment lease agreements with entities affiliated with Chief Executive Stoney M. Stubbs Jr., Chief Operating Officer S. Russell Stubbs and members of their immediate families. The terminations are effective Saturday, Sept. 30, with the company paying the lessors an early termination fee of about $275,000.
Frozen Food said it will buy 73 tractors from the lessors at fair market value, which is expected to be about $3.5 million. The company also rents 82 trailers from the lessors on a monthly basis and also will cancel these leases on Saturday.
Frozen Food is not required to purchase the trailers, but if a purchase takes place, it will be at fair market value set by independent and unrelated third parties.