Third Director in a Month Leaves MEC

Anthony R. Campbell has resigned as a director of the board of Magna Entertainment Corp., the third director to leave the company in a month, and the second in the span of five days. In separate filings with the Securities and Exchange Commission, company officials said they were engaged in discussions over potential "in-court or out-of-court" reorganizations.

MEC announced late Feb. 25 in a two-paragraph news release that Campbell “stepped down as director of MEC, effective immediately.” Campbell, a partner in Knott Partners Management, one of MEC’s largest institutional shareholders, had been a MEC board member since September 2007.

The resignation follows the Feb. 20 departure of Jerry D. Campbell, who had been a director since 2000, and was briefly the company’s chief executive officer. In a subsequent SEC filing, MEC said it was no longer in compliance with listing rules for the Nasdaq stock exchange, because it had less than three independent directors on its audit committee, but hoped to rectify the situation by its annual shareholder meeting, a date for which has not been announced.

On Jan. 26, Charlie J. Williams resigned from the board, citing a need to tend to other business matters. He had been a director since February 2007.

The financially-troubled company and its controlling shareholder, MI Developments, recently announced they had scrapped a reorganization proposal that included a spin-off of MEC. In recent stock holding statements filed with the SEC by chairman Frank Stronach, it was declared MID and MEC were "currently engaged" in discussions over future transactions, which could include providing financing with "any in-court or out-of-court reorganizations."
 

 

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