Johor Corporation (JCorp)'s President and Chief Executive Officer Muhammad Ali Hashim has denied that his resignation is due to the company's RM3.58 billion debt.

He said a six-month notice of resignation was submitted to the board of directors, as required under his contract, which is due to expire by year-end.

"The board will hold a meeting to decide whether to accept or extend the contract before the end of this month," he told reporters at the soft opening of the KPJ Tawakal Specialist Hospital in Kuala Lumpur today.

Replying to a question on the company's debt, Mohammad Ali said Jcorp's asset value of RM12 billion, including RM6 billion in listed shares, is currently higher than the debt itself.

"JCorp will not face bankruptcy. The debt due is on July 31, 2012 and we will negotiate with the bank to refinance. Debt is normal in business ," he said.

In another development, Muhammad Ali said the company was always looking for a good opportunity to acquire new hospitals.

Petronas hospital in the limelight

However, he disclosed that there was no plan to acquire the Prince Court Medical Centre (PCMC) as "it is so expensive".

PCMC was in the limelight recently after its Chief Executive Officer and two other key management staff were asked to go on leave pending the outcome of an audit review.

PCMC is owned by Petronas Hartabina Sdn Bhd, a unit of Petronas and managed by Vamed Healthcare Services Sdn Bhd and its partner, the Medical University of Vienna International Hospital Operations GmbH.

Earlier, Muhammad Ali said the new RM135 million KPJ Tawakal Specialist Hospital, situated off Jalan Pahang here, is expected to serve the needs of the local community as well as international patients through tourism healthcare.

He said the hospital would be officially open by year-end and serve as one of the most well-equipped hospitals with a staff of 504.

The KPJ Tawakal Specialist Hospital is managed by KPJ Healthcare Bhd, a member of JCorp, with a network of 19 hospitals in Malaysia and two in Indonesia.

It posted revenue of RM1.46 billion and pre-tax profit of RM143.89 million last year.

- Bernama