Teamsters Urge Shareholders to Withhold Vote from Central Freight Chairman
April 26 2005 - 6:37PM
PR Newswire (US)
Teamsters Urge Shareholders to Withhold Vote from Central Freight
Chairman Teamsters Issue Report on Chairman's Conflicts of Interest
WASHINGTON, April 26 /PRNewswire/ -- Today, the International
Brotherhood of Teamsters issued its report, Central Freight - On
the Road to Destruction: Moyes' Truckload of Related Party
Transactions. The report, directed at Central Freight (NASDAQ:CENF)
shareholders, spotlights the company's poor performance under the
leadership of Chairman Jerry Moyes since its initial public
offering in 2003. The report encourages shareholders to examine the
interrelationships between Central Freight and other businesses
owned by Moyes and to scrutinize Central Freight's ineffective
accounting procedures. Moyes has served as Chair, Chief Executive
Officer (CEO) and President of Swift Transportation and owns
Central Refrigerated Service, Inc., Swift Aviation, Interstate
Equipment Lines, Inc. and Southwest Premier Properties LLC -- all
companies that do business with one or more Moyes-owned or
controlled entities, including Central Freight. A report issued in
2003 by the Teamsters delineated the web of Moyes' conflicts at
Swift Transportation. The report was followed by an SEC
investigation. Moyes later stepped down as president and announced
he will resign as CEO of Swift by the end of 2005. "Central Freight
stock has lost 80 percent of its value since December 2003," said
C. Thomas Keegel, Teamsters General Secretary-Treasurer.
"Shareholders must ask if Moyes' decisions are in the best interest
of Central Freight or simply in his own best interest." "We called
on Central Freight's Board of Directors to find a more suitable
nominee for Chairman," Keegel said. "Concerned shareholders now
have no choice but to withhold their vote from Moyes." Teamsters
are neither seeking nor intending to seek any proxies from
shareholders. This current report uncovers the multiple, incestuous
business relationships at Central Freight with Moyes-controlled
entities. As Moyes chaired the board of directors at Central
Freight: * Central Freight made a "stalking horse" bid for Simon
Transportation, a bankrupted company owned by Moyes; * Central
Freight gave the assets and assumed the debts of Simon (now known
as Central Refrigerated) to Jerry Moyes; * Paid debts promised by
Moyes to executives of Jaguar Fast Freight; * Engaged in
multimillion dollar related party transactions with other Jerry
Moyes-owned or -controlled companies; * Central Freight's
accounting practices resulted in a "more than a remote likelihood
that material misstatements of the annual or interim consolidated
statements would not be prevented or detected." To download this
report or our 2003 report, visit our website at
http://www.teamster.org/. Founded in 1903, the International
Brotherhood of Teamsters represents 1.4 million hardworking men and
women throughout the United States and Canada. DATASOURCE:
International Brotherhood of Teamsters CONTACT: Carin Zelenko of
the International Brotherhood of Teamsters, +1-202-624-8100 Web
site: http://www.teamster.org/
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