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Martin Bain, the former Rangers Chief Executive, has dropped a near million pound lawsuit against the club.
Bain was suing for alleged breach of contract after Craig Whyte took over the SPL champions last year.
He has now said that he will return £480,000 of ring-fenced money to the club minus legal expenses.
Mr Bain says the situation surrounding Craig Whyte has led him to this decision as his action against was him, not the club.