JOHOR Corp's president and chief executive officer (CEO) Tan Sri Muhammad Ali Hashim quashed rumours that he is retiring due to the company's debts.

He said JCorp's asset value of RM12 billion, including RM6 billion in quoted securities are higher than the debt itself.

"JCorp will not face bankruptcy. The RM3.58 billion debt due is on July 31 2012 and we will negotiate with the bank to refinance. Debt is normal in business," he said during the soft opening of the KPJ Tawakal Specialist Hospital in Kuala Lumpur yesterday.

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

JCorp is expected to announce the name of the new CEO end of the month after a board meeting to be chaired by Johor Menteri Besar Datuk Abdul Ghani Othman who is also JCorp chairman.

Last week, Muhammad Ali confirmed that he intends to vacate his seat which he has held for close to three decades. He took over the position from Tan Sri Basir Ismail in 1982.

As part of the succession plan, five executives in JCorp has been identified to succeed him as president and CEO.

They are KPJ Healthcare Bhd managing director Datin Paduka Siti Sa'adiah Sheikh Bakir, Kulim (M) Bhd managing director Ahamad Mohamad, QSR Brands Bhd and KFC Holdings (M) Bhd (KFCH) managing director Jamaludin Md Ali, JCorp senior vice-president Kamaruzzaman Abu Kassim and Sindora Bhd managing director Rozan Mohd Sa'at.

Under his leadership, JCorp has emerged as the most successful state corporation in the country. One of the most high-profile take-over led by Muhammad Ali was in 2007 when JCorp's 57 per cent-owned subsidiary Kulim proposed to acquire a controlling stake in QSR Brands, the 42.9 per cent majority owner of fast-food operator, KFCH.

Today, the group is involved in diversified business activities such as palm oil and olechemicals, quick service restaurants, healthcare, property and hotels and intrapreneur venture.

It has more than 280 companies in its stable, including eight public listed companies (PLCs) such as Kulim, KPJ, KFC Holdings and London Stock Exchange-listed New Britain Palm Oil Ltd. Turnover from its PLCs stood at RM8.4 billion as at June 30 2010.

-- Business Times