Alastair Johnston is believed to have informed his fellow Sevco directors that he has resigned from the board of the company.
According to a report by Phil MacGiolla Bhain, the US based director has walked away just six months after coming up with a life saving loan to keep the Christmas lights on at Ibrox.
With his departure comes a request to have his loan repaid which adds another £500,000 to the external debts that the six year old club has accumulated.
Johnston was chairman of the old club until Craig Whyte threw a pound towards a grateful Dave Murray in May 2011 with the club going into administration 13 months later after Her Majesty rejected a CVA proposal.
Last year Companies House were notified that Johnston was a person of significant influence on the back of the loan.
The SFA have still to make any declaration on whether he was a fit and proper person.
Despite the hysteria about the appointment of Steven Gerrard it’s believed that two more directors will resign in July ensuring that their names don’t appear on the audited accounts.
Two days before the appointment of the Liverpool u-18 coach Paul Murray, a chartered accountant, resigned as a director.
With King the subject of court actions from the Court of Session and Takeover Appeal Board no credible investor will touch the toxic Ibrox company.