The Star - Business (20 April 2011)

PETALING JAYA: Johor Corp (JCorp) is confident that due to its increased earnings for 2010, it is in a stronger position to redeem its massive bonds that will come due in July 2012, it said in a statement on Monday.

It was reported on Monday that JCorp’s pre-tax profit and zakat jumped 37.4% to RM962mil for the financial year ended December 2010 from RM700mil the previous year.

The amount was also the highest achieved since its establishment 40 years ago, according to a local newswire report.

Sales rose 6.1% to RM7.52bil from RM7.09bil the previous year.

JCorp has been in the news due to its seemingly distressed position as it doesn’t seem to have enough money to repay the bonds that are coming due.

The group, however, is asset rich, having controlled over companies such as Kulim Bhd, QSR Brands Bhd, KFC Holdings (M) Bhd and KPJ Healthcare Bhd.

Speculation has been rife that it may sell some of these assets but JCorp has repeatedly said it would not embark on any “fire-sale”.

In its statement on Monday, JCorp said it was evaluating ways of ensuring the redemption of the bonds and this would also involve the overall restructuring of the group.

“This will take into account JCorp’s original objective. The board of directors are confident that Jcorp can execute a bond redemption scheme immaculately on or before the maturity date,” it said.

JCorp added that it had received a certificate signed by auditor-general Tan Sri Setia Ambrin Buang regarding its income statement for the financial year ending Dec 31, 2010.

“With the early completion of the audited accounts, the National Audit Department has evaluated JCorp’s financial management accountability index for 2010,” it said.