A senior London 2012 organising official has pulled out of an honours ceremony at Buckingham Palace today following the death of Olympic gold medal-winning sailor Andrew Simpson.

Sir Keith Mills, the deputy chairman of LOCOG (London Organising Committee of the Olympic and Paralympic Games) was due to be made a Knight Grand Cross - the highest grade of knighthood. But Buckingham Palace said the sailing enthusiast and businessman - a personal friend of Simpson - had said he would not now attend the event.

The 62-year-old, also a non-executive director at Tottenham, was named in the New Year Honours list last December in recognition of his services to the Olympic and Paralympic Games in the capital. Mills was knighted in 2006 after London won the bid to host the Games.

He attempted to launch a British bid to win the America's Cup with Team Origin, but withdrew after a rule change. Simpson, known as 'Bart' after the cartoon character, died after his catamaran capsized during a training session for the America's Cup off the coast of California.

The 36-year-old was sailing with the Swedish Artemis Racing team in San Francisco Bay when the yacht turned over and he became trapped underneath, his team said. At today's investiture ceremony, Paralympic champion Sarah Storey will be made a Dame by the Prince of Wales.

The athlete, who won four gold medals in London last year to take her overall tally to 11, is being awarded the honour for services to para-cycling. Also being honoured at the Buckingham Palace ceremony is swimmer Ellie Simmonds, who will receive an OBE, while taekwondo gold medallist Jade Jones and rower Katherine Copeland will be awarded MBEs.