02/21/2009 1:00AM

Magna director resigns

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Jerry Campbell, a former chief executive of Magna Entertainment Corp., resigned from the board of directors of Magna on Friday effective immediately, according to the company.

Magna did not cite a reason for the resignation in its release. Campbell did not immediately return a phone call on Saturday.

Campbell was a member of Magna's audit committee and had been involved in Magna's efforts to pay down its debt by selling racetracks. Magna said in the release that as a result of Campbell's resignation, "MEC is not currently in compliance with audit committee requirements" for listing on Nasdaq. The rule requires companies to have at least three independent directors on the audit committee. Magna will need to name another independent director to its audit committee at its next shareholder meeting or by Feb. 10, 2010, to come into compliance, the company said.

Campbell, a prominent banking executive in Michigan, was the chief executive officer of Magna for six months in 1999 and 2000. At the time, he owned Great Lakes Downs. Magna later purchased Great Lakes, but shuttered it in 2007.

Campbell opened a new racetrack in Huron Township, Michigan, in 2008. The track ran 62 live race cards in 2008.

Campbell's resignation follows a Wednesday announcement by Magna's parent company, MI Developments, that it had scrapped a plan to spin-off Magna in an effort to address Magna's crushing debt load. Racing officials said later in the week that the cancellation of the plan will almost certainly result in Magna filing for bankruptcy in several weeks.