According to the announcement, Magna has not received a specific timeline or procedure for the Quebec government's response to MEC's proposal. MEC's proposal is contingent upon, among other matters, the satisfactory negotiation of various conditions and agreements with the government of Quebec and others, and the approval of MEC's board of directors, the release said.Meanwhile, MI Developments Inc. announced Monday that Werner Czernohorsky had resigned as president, as a member of its board of directors and as deputy chairman of the board."On behalf of the board of directors and employees at MID, I would like to express our appreciation for the substantial contribution which Werner has made heading up MID's construction group since 1998", said MID chairman Frank Stronach. "I'm convinced that MID has an experienced management team at all levels that will continue to deliver strong performance in the future. We wish Werner the best in pursuing new challenges."Czernohorsky's resignation comes one week after MI Developments, a publicly traded real-estate company that owns 59% of the equity in Magna Entertainment Corp., reported big losses during the fourth quarter of 2003. The losses were largely as a result of MEC's poor financial performance. MID reported losses of $50.4 million, or $1.05 a share, for the final three months of the year. While MID's real estate business returned a positive $10.3 million, the company's interest in MEC resulted in $60.7 million in losses. Last month, MEC reported 2003 year-end losses that totaled $105 million, largely due to an $81 million write-down on many of its properties during the fourth quarterFor the year, MID lost $32.3 million. Annual revenue was up from $129.4 in 2002 to $165.9 million last year.
MID owns 96% of the voting power in MEC. The company was spun-off from Stronach's auto-parts company Magna International in August 2002.