As it continues to reorganize its operations, refrigerated carrier Frozen Food Express Industries has negotiated a new three-year, $40-million revolving credit facility. The agreement replaces $33.3-million facility due to expire June 1.
The new borrowing is secured by the carrier’s accounts receivable, and FFE also has the option of offering liens on portions of its fleet if borrowing exceeds levels covered by receivables. The old credit agreement was secured by receivables, inventories and all of FFE’s tractors and trailers.
Administrative agent for the agreement is Comerica Bank – Texas, and LaSalle Bank, NA Chicago is also participating in the revolving credit facility.
FFE provides truckload, LTL and distribution transportation throughout North America for temperature-controlled perishable goods. In the first quarter of 2002, it in posted an $859,000 loss on $79.1 million in revenue, compared to a loss of $884,000 on $89.5 million in the same period last year.